R75-billion MTN legal battle heats up

Turkcell’s wholly owned subsidiary, East Asian Consortium (EAC), has announced that it filed its opposition to MTN’s application to the Constitutional Court for leave to appeal a recent Supreme Court judgment.

EAC filed its papers on 4 June 2025. It said the Supreme Court judgment affirms the jurisdiction of South African courts to hear allegations that MTN engaged in bribery and corruption in connection with its operations in Iran.

“The Supreme Court of Appeal (SCA) judgment also represents a significant victory for the principle that South African companies should be held accountable in South Africa for their conduct abroad,” it stated.

Turkcell and EAC instituted legal action in the High Court of South Africa against MTN Group and certain subsidiaries in 2013.

The High Court dismissed the case in 2022, ruling that South African courts do not have jurisdiction over the matter.

EAC appealed the matter, and the Supreme Court handed down its judgment on 29 April 2025, setting aside the earlier High Court ruling.

However, MTN said the appeals court upheld the High Court ruling that Iranian law is applicable to key aspects of the dispute.

EAC’s application to the South African courts came after Turkcell first tried to sue MTN in Washington, D.C. in the United States.

When they filed the case in South Africa, they sought $4.2 billion (R75 billion) in damages, excluding interest.

The battle between the companies dates back to 2004 and centres around a tender for cellular network operating licences in Iran.

Turkcell said it was the winning bidder for the Iranian licence in 2004, with MTN coming second. However, MTN subsequently operated Iran’s first private cellphone network as MTN Irancell.

Turkcell claimed that MTN bribed officials, arranged meetings for Iran with South African leaders, and promised Iran weapons and United Nations votes in exchange for a stake in Irancell.

Turkcell withdrew from the legal action in November 2020, leaving EAC as the sole plaintiff against MTN.

When the High Court dismissed the case in 2022 with costs, MTN told shareholders that it put an end to the Turkcell litigation.

However, its victory celebration proved premature, as Turkcell took the ruling on appeal.

“The decision to uphold the appeal does not relate to the merits of Turkcell’s claims or the allegations made against MTN Group, which have not yet been tested in court,” MTN stated.

“MTN has always maintained that the Turkcell litigation was without merit and has expressed confidence that it would successfully defend these proceedings.”

Battle head to apex court

Following the SCA ruling, MTN approached the Constitutional Court for leave to appeal, which EAC has now opposed.

“Among other things, this case has significant implications for South Africa’s stance on international bribery and corruption,” Turkcell said.

“In April 2025, the SCA handed down a comprehensive judgment rejecting all of the jurisdictional objections raised by MTN, its former executives Phuthuma Nhleko and Irene Charnley, and several MTN subsidiaries.”

Turkcell said the SCA affirmed that South African courts do have jurisdiction over the matter, clearing the path for the case to proceed to trial.

“MTN’s request to seek leave to appeal the SCA’s judgment at the Constitutional Court is yet another attempt to delay accountability and avoid a trial where the full truth will come to light,” said Cedric Soule, counsel for Turkcell.

“The Supreme Court of Appeal made it clear: South African courts are the appropriate venue for these serious allegations to be tested.”

Soule said it was time for MTN and its former executives to face the evidence in a South African courtroom before an impartial South African judge.

“MTN’s repeated reliance on the Hoffmann Report, an internal investigation commissioned by MTN’s board, as supposedly exonerating it, is improper,” said Soule.

“The process that MTN put together lacked the independence, rigour and transparency of a judicial proceeding.”

Soule alleges that the Hoffmann Committee failed to interview key witnesses, did not independently gather or assess evidence, and did not use independent counsel.

“Its conclusions are therefore unreliable and irrelevant to the current proceedings,” Soule argued.

Turkcell has rejected MTN’s argument that the courts of the Islamic Republic of Iran would offer a fair alternative venue for EAC to litigate its claims against MTN.

It said there were well-documented concerns regarding judicial independence and due process in Iran.

For that reason, Turkcell said it was difficult to accept that a South African company alleged to have acted in concert with Iranian officials to improperly obtain a tender would now suggests that Iranian courts are an appropriate forum.

“After more than twelve years of procedural stalling, Turkcell remains committed to presenting the full evidence in court,” said Soule.

“This case is about holding South African companies accountable for their actions abroad, especially when those actions involve serious allegations of bribery and corruption.”

Turkcell expects that the Constitutional Court will make a decision within three months about whether to grant MTN and the other defendants’ leave to appeal.