UK investment in Egypt nears $50bn as trade ties deepen – ambassador    Global stocks mixed on Wednesday    Egypt advances strategy to reduce public, external debt    Egypt, China discuss sustainable Gaza ceasefire and Sudan truce    Gaza death toll climbs as winter cold intensifies humanitarian emergency    Public enterprises record $1bn in exports, 20% revenue growth in FY 2024/25: Minister    MSMEDA signs EGP 300m financing agreement with Reefy    GAFI prioritises Start-Up Support Unit, Investor Dispute Settlement Centre: Heiba    GENNVAX launches largest regional vaccine manufacturing facility with $150m investment    Health Minister Discusses radiology upgrade with Curagita, ACH    Sanofi introduces new multiple myeloma treatment to Egyptian market    Central Bank of Egypt, Medical Emergencies, Genetic and Rare Diseases Fund renew deal for 3 years    Egypt, Saudi FMs discuss Gaza, Sudan and preparations for Supreme Coordination Council    Egypt's SPNEX Satellite successfully enters orbit    Egypt unveils restored colossal statues of King Amenhotep III at Luxor mortuary temple    Egyptian Golf Federation appoints Stuart Clayton as technical director    4th Egyptian Women Summit kicks off with focus on STEM, AI    Egypt's PM reviews major healthcare expansion plan with Nile Medical City    UNESCO adds Egyptian Koshari to intangible cultural heritage list    UNESCO adds Egypt's national dish Koshary to intangible cultural heritage list    Egypt calls for inclusive Nile Basin dialogue, warns against 'hostile rhetoric'    Egypt recovers two ancient artefacts from Belgium    Egypt, Saudi nuclear authorities sign MoU to boost cooperation on nuclear safety    Giza master plan targets major hotel expansion to match Grand Egyptian Museum launch    Australia returns 17 rare ancient Egyptian artefacts    China invites Egypt to join African duty-free export scheme    Egypt calls for stronger Africa-Europe partnership at Luanda summit    Egypt begins 2nd round of parliamentary elections with 34.6m eligible voters    Egypt warns of erratic Ethiopian dam operations after sharp swings in Blue Nile flows    Egypt scraps parliamentary election results in 19 districts over violations    Egypt golf team reclaims Arab standing with silver; Omar Hisham Talaat congratulates team    Egypt launches Red Sea Open to boost tourism, international profile    Sisi expands national support fund to include diplomats who died on duty    Egypt's PM reviews efforts to remove Nile River encroachments    Egypt resolves dispute between top African sports bodies ahead of 2027 African Games    Germany among EU's priciest labour markets – official data    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



S.Africa's MTN slides on Iran corruption lawsuit
Shares of MTN, the South African mobile operator, hit by its rival lawsuit on allegations of supporting Tehran
Reuters Published in Ahram Online on 31 - 03 - 2012

Shares in MTN Group slid on Friday after rival Turkcell filed a $4.2 billion suit against the South African mobile operator, alleging it bribed officials and lobbied support for Tehran's nuclear programme to win an Iranian licence.
Turkcell, which lost the 2004 bid for the Iranian licence to MTN, filed the suit in a U.S. federal court in Washington, accusing the Johannesburg-based firm of using its influence with Pretoria to arrange support for Iran's military.
The Turkcell case threatens to tarnish the reputation of both MTN - a black-run company widely seen as a post-apartheid success story - and the South African government, including former President Thabo Mbeki.
It comes at a time when countries around the world, including South Africa, are under strong Western pressure to halt oil imports from Iran and cut other trade.
MTN, Africa's top mobile operator, has said the claim is without legal merit and has accused Turkcell of attempting to extort money from it - an allegation the Turkish company rejects.
Turkcell's suit, backed by a collection of alleged MTN internal documents including emails, invoices, memos and presentations, accuses the South African firm of a "staggeringly brazen orchestra of corruption".
Turkey's largest mobile operator alleges that under a strategic plan code-named "Project Snooker", MTN used corrupt practices to win the licence which had initially been awarded to Turkcell.
MTN owns 49 percent of local unit Irancell, from which it generates nearly 10 percent of its annual revenue.
"Upset by its loss of the open competition, MTN sought to obtain illegally what it could not obtain through honest competition," the Turkcell lawsuit said.
It notes Iran had initially announced Turkcell as the winning bidder for the Irancell licence in February 2004, following a tender in which multiple companies participated.
POLITICAL INFLUENCE
"MTN used its high-level political influence within the South African government to offer Iran the two most important items that the country could not obtain for itself: 1) support for the Iranian development of nuclear weapons; and 2) the procurement of high-tech defence equipment".
Pretoria has denied the claims, saying its foreign policy is independent. Foreign ministry spokesman Clayson Monyela said: "We are not going to engage in (a discussion about) the merits of a case in which the government is not a respondent."
MTN's strong ties to the government are well documented: the company was set up with government help in 1994 as the first black-owned company after the end of apartheid.
MTN Chairman Cyril Ramaphosa, who is also mentioned in the suit, is a leading member of the ruling ANC.
Shares in MTN dropped 3 percent to 133.12 rand by 1235 GMT. The shares fell 1.5 percent on Thursday when Turkcell announced it had filed the suit.
The lawsuit could be damaging enough for MTN to reconsider its presence in Iran, said Abri du Plessis, chief investment officer at Gryphon Asset Management in Cape Town.
"Especially since it's going via the U.S. there could be enough pressure for them to exit," he said. "It could be possible that they don't get a good price even if they do a deal with the Turks and sell it to them."
Turkcell said it had brought the suit in a U.S. court because it believed MTN breached international law.
The lawsuit says MTN promised Iran it could deliver South Africa's vote at the International Atomic Energy Agency (IAEA) and that it promised Iran defence equipment otherwise prohibited by international laws. It also accuses MTN of bribing government officials in both Iran and South Africa.
Turkcell alleges that MTN ultimately secured South Africa's abstention on a crucial decision at the IAEA on referring Iran to the United Nations Security Council.
According to the lawsuit, MTN arranged a private meeting between the then South African President Mbeki and Iran's national security advisor and nuclear negotiation chief, Hassan Rowhani.
MTN has set up an independent committee led by UK legal expert Lord Hoffmann to investigate the claims. It has said Turkcell refuses to cooperate with the committee.

Clic here to read the story from its source.