http://www.ft.com/cms/s/0/928c22b6-cc3f-11e1-9c96-00144feabdc0.html#axzz20dKVJb5C
By Andrew England in Johannesburg
South Africa has suspended its former ambassador to Iran in relation to corruption allegations made in a $4.2bn lawsuit filed against MTN, the South African emerging markets mobile phone operator.
Turkcell, the Turkish operator, launched legal action against MTN in the US in March, claiming that the South African group used bribes and its influence to get South Africa to abstain from a vote on Iran at the International Atomic Energy Agency in order to win Iran’s second mobile phone licence in 2005.
The Turkish company’s lawsuit alleges that MTN paid Yusuf Saloojee, then Pretoria’s ambassador in Tehran, $200,000 to “help MTN deliver on the nuclear vote”.
Clayson Monyela, spokesman for the South African foreign ministry, said Mr Saloojee, who had been ambassador in Oman, was suspended at the beginning of the month, adding that the ministry had launched its own investigation into the allegations.
Mr Saloojee has denied the allegations in statements to South African media.
MTN owns 49 per cent of Irancell and its Iranian operation accounts for almost 35m of its 164m subscribers and about 9 per cent of the group’s revenue and profits in 2011. MTN was awarded the licence, which Turkcell also bid for, in 2005.
The South African group has described Turkcell’s allegations as “unfounded” and “simply ludicrous” and this month filed a motion to have the case dismissed, arguing that there was no proper basis for such a claim.
Pressure, however, has been building on the company, which has been one of South Africa’s post-apartheid corporate success stories.
Last month, The Hawks, an investigations unit of the South African police, decided to launch its own probe into the claims.
Turkcell, which is claiming $4.2bn in damages, alleges that MTN created “Project Snooker” to “snooker its business competitor through these corrupt arrangements”.
“MTN’s corrupt acts included: (1) promising Iran that MTN could deliver South Africa’s vote at the International Atomic Energy Agency (IAEA); (2) promising Iran defence equipment otherwise prohibited by national and international laws; and (3) the outright bribery of high-level government officials in both Iran and South Africa,” Turkcell’s lawsuit says.
The group has also come under pressure from the Democratic Alliance, a South African opposition party, and has been the focus of a campaign by United Against Nuclear Iran, a US anti-Iran lobby group.
MTN said in it a statement issued at its annual general meeting that it was working with US authorities to manage its compliance with Washington’s sanctions against Iran.
By Andrew England in Johannesburg
South Africa has suspended its former ambassador to Iran in relation to corruption allegations made in a $4.2bn lawsuit filed against MTN, the South African emerging markets mobile phone operator.
Turkcell, the Turkish operator, launched legal action against MTN in the US in March, claiming that the South African group used bribes and its influence to get South Africa to abstain from a vote on Iran at the International Atomic Energy Agency in order to win Iran’s second mobile phone licence in 2005.
The Turkish company’s lawsuit alleges that MTN paid Yusuf Saloojee, then Pretoria’s ambassador in Tehran, $200,000 to “help MTN deliver on the nuclear vote”.
Clayson Monyela, spokesman for the South African foreign ministry, said Mr Saloojee, who had been ambassador in Oman, was suspended at the beginning of the month, adding that the ministry had launched its own investigation into the allegations.
Mr Saloojee has denied the allegations in statements to South African media.
MTN owns 49 per cent of Irancell and its Iranian operation accounts for almost 35m of its 164m subscribers and about 9 per cent of the group’s revenue and profits in 2011. MTN was awarded the licence, which Turkcell also bid for, in 2005.
The South African group has described Turkcell’s allegations as “unfounded” and “simply ludicrous” and this month filed a motion to have the case dismissed, arguing that there was no proper basis for such a claim.
Pressure, however, has been building on the company, which has been one of South Africa’s post-apartheid corporate success stories.
Last month, The Hawks, an investigations unit of the South African police, decided to launch its own probe into the claims.
Turkcell, which is claiming $4.2bn in damages, alleges that MTN created “Project Snooker” to “snooker its business competitor through these corrupt arrangements”.
“MTN’s corrupt acts included: (1) promising Iran that MTN could deliver South Africa’s vote at the International Atomic Energy Agency (IAEA); (2) promising Iran defence equipment otherwise prohibited by national and international laws; and (3) the outright bribery of high-level government officials in both Iran and South Africa,” Turkcell’s lawsuit says.
The group has also come under pressure from the Democratic Alliance, a South African opposition party, and has been the focus of a campaign by United Against Nuclear Iran, a US anti-Iran lobby group.
MTN said in it a statement issued at its annual general meeting that it was working with US authorities to manage its compliance with Washington’s sanctions against Iran.