Turkcell is set to oppose MTN’s bid in the Constitutional Court
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Turkish mobile network operator, Turkcel, is set to oppose MTN’s bid in the Constitutional Court to appeal a recent ruling that will allow allegations of bribery against MTN to be heard in South Africa.
MTN, Africa's largest mobile network operator, approached the Constitutional Court arguing that South Africa doesn’t have jurisdiction to hear legal bids over alleged corruption in Iran, and the matter should be heard there.
In April, the Supreme Court of Appeal (SCA) allowed Turkcell to present evidence alleging MTN committed bribery and corruption to overturn an Iranian GSM licence award. The SCA ruling marked the first time a South African court determined whether misconduct allegations abroad could be heard locally.
On Thursday, Turkcell said it was opposing MTN’s application to the Constitutional Court. In a statement, it said that this was “in Turkcell’s ongoing pursuit of justice for damages estimated at over $4.2 billion, stemming from allegations that MTN paid bribes to Iranian and South African officials to overturn a public tender awarded initially to Turkcell for a multi-billion-dollar GSM telecom license in Iran”.
Should Turkcell be victorious in its defence of MTN’s appeal, Turkcell can take its allegations of bribery to the Johannesburg High Court. Its previous bid, two years ago, failed with a finding then by that court that South Africa was not the correct geography to hear the matter. This is the decision that has been overturned through the SCA ruling.
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, contending that MTN secured its 49% stake in a telecommunications licence in Iran through bribery.
Turkcell said that the local “case has significant implications for South Africa’s stance on international bribery and corruption”.
The Turkish operator argues 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.
MTN has denied these allegations, publicly stating that it has always “maintained that the Turkcell litigation was without merit and has expressed confidence that it would successfully defend these proceedings”.
In 2012, the UK’s Lord Leonard Hoffmann released a report that 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.”
Cedric Soule, counsel for Turkcell, said that MTN’s reliance on this report, which its commissioned, is improper as “the process that MTN put together lacked the independence, rigour and transparency of a judicial proceeding”.
Soule added that “the Hoffmann Committee failed to interview key witnesses, did not independently gather or assess evidence, and did not use independent counsel; its conclusions are therefore unreliable and irrelevant to the current proceedings”.
MTN, however, has said that “these claims were the subject of a comprehensive and independent investigation led by Lord Hoffmann, the findings of which did not support the allegations”.
The Constitutional Court will now decide whether to grant the request for leave to appeal filed by MTN and the other defendants. Turkcell expects a decision within three months.
MTN has previously said it “remains committed to operating with integrity, transparency, and full compliance with applicable laws. The Group continues to respect the legal process and will pursue all appropriate avenues to defend its position”.
The South Africa-based mobile network operator recently reported solid growth as revenue gained 19.8% - when stripping out currency fluctuations – for the three months to March.
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