Turkcell alleges that MTN paid off both Iranian and South African officials to overturn a public tender, which it lost to Turkcell, for a multi-billion-dollar opportunity to run an Iranian GSM telecom licence.
Image: MTN/Facebook
After having won a landmark judgement in the Supreme Court of Appeal (SCA), Turkcell is now looking forward to presenting evidence that it believes shows that MTN committed acts of bribery and corruption to overturn the award of an Iranian GSM licence to Turkcell.
The SCA ruling set a precedent in that it was the first time a South African court had been asked to determine whether allegations of misconduct that apparently took place in another country could be heard locally.
Turkcell’s legal wrangle with MTN dates back more than a decade when it initially approached the US courts in an action it later retracted. It is arguing that MTN did not win its 49% of a telecommunications licence in Iran fairly.
Last week, the SCA said that the matter can go ahead in a South African court, with Cedric Soule, global counsel for Turkcell on Monday, saying, “EAC is pleased with the Supreme Court of Appeal’s decision. EAC now looks forward to presenting to the South African courts, for the first time, the evidence that it believes shows that MTN committed acts of bribery and corruption to overturn the award of an Iranian GSM licence to Turkcell.”
Turkcell alleges that MTN paid off both Iranian and South African officials to overturn a public tender, which it lost to Turkcell, for a multi-billion-dollar opportunity to run an Iranian GSM telecom licence, it said in a statement.
MTN has said that it intends to approach the Constitutional Court to appeal the ruling.
In a recent statement to shareholders, Africa’s largest mobile network operator said that the “decision to uphold the appeal does not relate to the merits of Turkcell’s claims or the allegations made against MTN Group, which have not yet been tested in court. MTN has always maintained that the Turkcell litigation was without merit and has expressed confidence that it would successfully defend these proceedings”.
Turkcell alleges that MTN paid off South Africa’s then ambassador to Iran, bribed high-ranking Iranian officials, and channelled a $400,000 payoff through a “sham consulting contract” with a Dubai-based company called Aristo Oil.
In 2012, the UK’s Lord Leonard Hoffmann released a report exonerated MTN of any shady dealings in securing the licence. In part, the report stated: “All the allegations are a fabric of lies, distortions and inventions.”
A previous High Court ruling had found that South African courts could not hear matters that were in a different geographical location.
IOL