MTN says it has submitted a notice of intention to appeal against the recent decision by the Supreme Court of Appeal (SCA) in the matter brought by Turkcell, the latest chapter in a more than decade-long legal battle.
In April, the JSE-listed telecommunications operator said it would be heading to the apex court in relation to the drawn-out case relating to its operating licence in Iran.
The mobile operator, together with former CEO Phuthuma Nhleko and former director Irene Charnley, have now approached the court seeking leave to appeal against the SCA decision that affirmed the jurisdiction of SA courts to hear the allegations of bribery and corruption levelled against MTN.
“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,” said the mobile group.
“MTN denies the allegations made by Turkcell. 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 notice was filed on May 21. The Constitutional Court now has to decide whether or not it will hear the appeal.
Turkcell believes the court should decline to hear the appeal filed by MTN and the other defendants, saying “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 court action dates back to 2013, when Turkish company Turkcell İletişim Hizmetleri and its wholly owned subsidiary, East Asian Consortium (EAC) instituted legal action in the High Court in SA against MTN and certain of its subsidiaries. Turkcell and EAC sought substantial damages from MTN pursuant to allegations of impropriety in the award of the first private mobile telecommunications licence in Iran.
Turkcell accused MTN of paying bribes to SA and Iranian officials to secure 49% of Irancell Telecommunications Services in 2005, which gave it a licence to operate in the country.
Turkcell had been demanding $4.2bn in damages, plus interest, based on profit it says it could have made had it been able to keep the licence.
MTN has always denied the charges.
Turkcell global counsel Cedric Soule said: “This is the latest attempt by MTN and the other defendants to delay trial. The SCA clearly decided that SA courts have jurisdiction in this matter and unequivocally rejected all of the objections raised by MTN, Phuthuma Nhleko and Irene Charnley.”
“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.”
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