MTN threatened with court action
Turkcell Iletisim Hizmetlera AS (Turkcell) has informed MTN that it believes it has a claim against the company and its relevant subsidiary, arising from the award of a second GSM Licence, based on alleged violations of United States laws (the Turkcell US Claim), and has indicated an intention to bring such a claim before a United States court. No such claim has been filed or served.
Turkcell has indicated an intention to bring a claim against MTN before a United States court (image: file)
Turkcell alleges that, between 2004 and 2005, in an effort to cause the Iranian government to issue a GSM Licence to MTN rather than Turkcell, MTN made improper payments to an Iranian and a South African government official; that MTN encouraged the South African government to take a favourable position toward Iran’s civil nuclear power development programme at a meeting of the International Atomic Energy Agency in November 2005; and that MTN enlisted South African government support for the provision of military equipment to Iran.
Turkcell has intimated a range of putative claim amounts, the nominal value of which, if formally asserted, would be material. No basis for any such claim amount has been substantiated to date. The MTN Board of Directors, on legal advice, presently believe that the Turkcell US Claim lacks legal merit, and that in any event, a US court would not have jurisdiction to entertain the claim.
MTN however, seems to be taking the allegations seriously as it has established a special committee consisting of non-executive directors to consider the allegations made in support of the Turkcell US Claim.
The Board has appointed Lord Leonard Hoffmann, an internationally renowned jurist, to chair the committee, to oversee and validate its investigation, and to ensure the integrity and independence of the investigation.
The Board has directed the committee to take all actions it deems appropriate to investigate the allegations, and to make recommendations to the Board as to any actions to be taken as a result of its findings, including as to publication of such findings and any measures which may be warranted.
Staff writer
