Latest news with #PhuthumaNhleko
The Citizen
5 days ago
- Business
- The Citizen
Sued for a staggering R78 billion, MTN turns to the Constitutional Court
However, 12 years later, MTN and Turkcell are still fighting over whether South African courts have jurisdiction to hear the case. Africa's largest mobile network operator, MTN, is appealing a decision made by the South African Supreme Court of Appeal in the $4.2 billion (R78-billion at the time the legal battle began) by Turkish telecommunications and technology services provider, Turkcell. The Supreme Court of Appeal recently upheld 'aspects of the legal appeal' brought by Turkcell. Turkcell is accusing MTN of being awarded a multi-billion-dollar GSM telecom license in Iran irregularly. MTN has previously denied this, supported by an independent forensic report by the Hoffman report. However, 12 years later, MTN and Turkcell are still fighting over whether South African courts have jurisdiction to hear the case. ALSO READ: This was South Africa's best mobile network in 2024 MTN approaches the Constitutional Court The MTN Group has confirmed to The Citizen that it is appealing the SCA decision. However, the decision does not concern the merits or allegations of the case, but rather whether South African courts have jurisdiction in the matter. 'MTN Group confirms that it submitted its notice of intention to appeal the recent decision of the South African Supreme Court of Appeal in the matter brought by Turkcell,' the Group told The Citizen. MTN Group stated, 'The appeal was lodged against a High Court judgment, in which the High Court had dismissed Turkcell's case against MTN Group on the basis that the South African courts did not have jurisdiction. 'The SCA has set aside the judgment and decided that the South African courts do have jurisdiction. The SCA, however, upheld the High Court ruling that Iranian law is applicable to key aspects of the dispute.' MTN confident it will win 'The decision to uphold the appeal does not relate to the merits of Turkcell's claims or the allegations made against the 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,' added the Group. In response to The Citizen, the Group further said, 'MTN maintains that, while it agrees that Iranian law governs the underlying dispute, the allegations raised by Turkcell should be adjudicated in the courts of Iran, which are the appropriate and competent forum for this matter.' ALSO READ: Iran haunts MTN and SA Was anyone bribed? The legal battle between MTN and Turkcell began in 2013, when the Turkish telecommunications company accused MTN of bribing Iranian and South African officials to secure a multi-billion-dollar GSM telecom license in Iran. Cedric Soule, global counsel for Turkcell, stated that the license was initially awarded to the Turkish telecommunications company, but it was subsequently overturned in 2005. Former Chairman of the Group Phuthuma Nhleko and director Irene Charnley have also been accused of being influential figures who were closely involved in the deal. Tactic to delay the trial 'This is the latest attempt by MTN and the other defendants to delay the trial. The SCA clearly decided that South African courts have jurisdiction in this matter and unequivocally rejected all the objections raised by MTN,' added Soule. 'We remain confident that when the full evidence is presented at trial, it will demonstrate that MTN engaged in corrupt practices to secure the Iranian licence initially awarded to Turkcell.' Turkcell believes the Constitutional Court should decline to hear the appeal filed by MTN and the other defendants. 'The SCA's decision represents a significant victory for the principle that South African companies should be held accountable in South Africa for their conduct abroad.' Hoffmann report 'After twelve years of procedural delays, Turkcell looks forward to the opportunity to present its evidence in court and seek appropriate redress for the more than $4.2 billion in damages suffered due to MTN's alleged misconduct,' said Soule. In 2013, the Hoffmann report found that the license to MTN was awarded lawfully, clearing the group of any wrongdoing. The Committee, which compiled the report, was appointed by MTN in 2012. It was found that two statements by Kilowan 'shown to be a fantasist and a conspiracy theorist'. NOW READ: MTN suffers R11.2 billion loss. What went wrong?
IOL News
22-05-2025
- Business
- IOL News
MTN faces bribery allegations as Turkcell appeals to the Constitutional Court
MTN and its former executives, Phuthuma Nhleko and Irene Charnley, have approached the Constitutional Court to block a local court from hearing a case brought by Iranian rival Turkcell, which accuses them of bribery and corruption in Iran. Image: Timothy Bernard/Independent Newspapers MTN and some of its former employees – Phuthuma Nhleko and Irene Charnley – have headed to the Constitutional Court to fend off a local court hearing an argument by Iranian rival, Turkcell, that it was involved in bribery and corruption in that country. At the beginning of the month, Turkcell won a landmark judgement in the Supreme Court of Appeal (SCA) that made it possible for Turkcell to present 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 doesn't think the apex court should hear the matter, as the SCA's majority judgment was well-reasoned and correctly applied the established legal principles regarding jurisdiction that MTN and the other defendants invoked to seek to delay the trial. 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. Cedric Soule, global counsel for Turkcell, alleges that MTN's actions caused it more than $4.2 billion in damages. Africa's largest mobile network operator has said 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.' This report also cleared Charnley, then VP for the Middle East and North and East Africa, and Nhleko, who was then CEO, of any wrongdoing. In a statement issued on Thursday, Turkcell noted the move by MTN to appeal the SCA's ruling in the Constitutional Court. 'The Constitutional Court will now decide whether to hear the appeal filed by MTN and the other defendants in this ongoing legal battle that dates back to 2013,' said Turkcell. MTN had not informed the market that it had gone to the highest court in the land, although it previously said it may do so. Its Iranian operation has been marred by hyper inflation in that country, its quarterly update for the three months to March, released in the middle of this month, showed. Comment from MTN has been requested and will be published as soon as it is available. Video Player is loading. 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Next Stay Close ✕ 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, arguing that MTN won its 49% of a telecommunications licence in Iran through paying bribes. 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, it has said. 'This case has significant implications for South Africa's stance on international bribery and corruption,' it said in a statement this morning. MTN has denied these allegations* *This is a developing story IOL
