The former CEO of MTN Group, Phuthuma Nhleko denied claims of bribery on Sunday in the on-going suit filed against MTN by Turkish mobile operator Turkcell.

Phuthuma Nhleko was said to have authorised bribes to Iranian and South African government officials in return for a cellular licence in Iran.  In response to the allegation Mr Nhleko said, “I can state quite categorically that during my tenure as group CEO of MTN no bribes were authorised or paid by the MTN Group to any South African or Iranian government officials to secure the mobile licence in Iran.”

“MTN’s conduct was not unlawful or corrupt and MTN was certainly not in a position where it could influence or fetter the decisions made by the South African government or any other sovereign state,” He added.

Turkcell filed a $4.2bn lawsuit in a US federal court, accusing it of using bribery and other corrupt acts to win its licence in Iran in 2004. According to MTN, Turkcell has refused to cooperate with the investigations as MTN hired a  UK legal scholar to investigate its claims.

The South African government was also roped in by the suit as it was alleged that MTN lobbied government officials to take a neutral stance on Iran’s nuclear programme and provide Tehran with defence equipment, Pretoria has refuted the claims.

According to Nhleko, “MTN’s conduct was not unlawful or corrupt and MTN was certainly not in a position where it could influence or fetter the decisions made by the South African government or any other sovereign state.”

MTN shares fall

Meanwhile, MTN shares continued a downward trend as it fell more than 3% in early trade on JSE today.

According to fin24.com report, Shares of MTN [JSE:MTN] were down 2.8% at R131.25 at 07:35 GMT after earlier dropping more than 3% as investors continued to hammer Africa’s top telecom company on worries over the $4.2bn lawsuit.

Photo: Reuters