Turkcell opposes MTN’s Constitutional Court appeal in $4.2bn Iran licence case

File photo: A person walks past an MTN logo outside the company's headquarters in Johannesburg, South Africa, on 17 November 2023. Reuters/Siphiwe Sibeko/File photo

Turkcell’s subsidiary, East Asian Consortium B.V. (EAC), has filed papers opposing MTN’s application to the Constitutional Court for leave to appeal a recent Supreme Court of Appeal (SCA) ruling.

The SCA judgment, handed down in April, confirmed that South African courts have jurisdiction to hear EAC’s $4.2bn civil claim against MTN over an allegedly tainted telecom licence in Iran.

Background to the dispute

The case relates to Turkcell’s long-standing allegations that MTN and its former executives used bribery to secure a GSM licence in Iran that was initially awarded to Turkcell in the early 2000s. MTN has denied wrongdoing.

Turkcell’s filing is the latest development in a case that has seen years of procedural delays and jurisdictional challenges.

Arguments against MTN’s appeal

In its submission, Turkcell argues that MTN is attempting to delay proceedings and avoid a trial. The company also questions MTN’s ongoing reliance on the Hoffmann Report—an internal investigation commissioned by its board—as evidence of exoneration, saying it lacked the independence and transparency of a court process.

Turkcell further rejects MTN’s argument that Iranian courts would offer a fair and appropriate venue for the dispute.

Next steps

The Constitutional Court must now decide whether to grant MTN leave to appeal. A decision is expected within three months.

Turkcell is represented by Vasco de Oliveira Incorporated, with counsel Alistair Franklin SC and J.J. Meiring.