is being sued by the Turkish company for allegedly bribing Iranian officials to get the contract.
MTN announced last Thursday that rival Turkcell was planning to file a lawsuit against it for unlawfully attempting to influence the Iranian and South African governments to get a cellular license in the Islamic Republic.
MTN said the Turkish company was asserting that MTN lobbied the South Africa government to back Iran’s nuclear program in an attempt to win favors with the Iranian government for the license.
MTN also said that, according to a notice it had received from Turkcell, the Turkish company was also asserting it asked the South African government to aid Iran’s military. And it said Turkcell accuses it of bribing officials of both governments.
Turkcell initially won the contract from Iran’s Telecommunications Ministry. But there was then a flurry of activity and charges against Turkcell, including allegations of ties to Israel. The contract was then taken away from Turkcell and awarded to MTN in 2004.
Turkcell issued a statement saying, “Talks between our company and MTN have been conducted for some time and these talks are continuing. As a sign of the company’s goodwill and desire to continue these talks, a statement will not be made about this issue until the said talks are completed.”
South Africa has generally been favorable to the Islamic Republic and critical of sanctions. But it has not severed its ties to the West and often seems to weave back and forth, trying not to offend anyone on the Iran issue.
South Africa’s Foreign Ministry had to switch to damage control after news reports about the lawsuit surfaced. “South Africa’s foreign policy is independent and it cannot be influenced by anyone,” said spokesman Clayson Monyela.
MTN is closely linked to the ruling African National Congress (ANC). The firm was sponsored by the state, although it is private. MTN Chairman Cyril Ramaphosa is an official of the ANC. He said his company had “zero tolerance for corrupt and unethical business practices.”
MTN is the flagship South African corporation that emerged after apartheid. The $33 billion company is the largest black-owned corporation in South Africa and has operations in 21 countries worldwide.
