South Africa’s Supreme Court of Appeal (SCA) ruled on Monday that the long-standing bribery dispute between South African telecom MTN and Turkish rival Turkcell could be heard in South African courts. This decision marked a significant development in the case.
In December 2022, the High Court dismissed Turkcell’s $4.2 billion case, concluding that Iranian courts had jurisdiction.
Turkcell alleges that MTN illegally secured a GSM telecom licence in Iran, including bribing Iranian and South African officials to overturn a public tender that Turkcell had won initially. The case centres on the 2005 awarding of the Iranian licence, in which MTN holds a 49 per cent stake via Irancell. Turkcell claims MTN paid off South Africa’s then-ambassador to Iran and high-ranking Iranian officials, funnelling a $400,000 payoff through a Dubai-based company called Aristo Oil.
The SCA agreed with Turkcell’s argument that South African courts have jurisdiction because MTN’s headquarters are in South Africa, and the alleged unlawful acts were planned there. Turkcell’s global counsel Cedric Soule stated, “EAC now looks forward to presenting to the South African courts – for the first time – the evidence it believes shows MTN committed acts of bribery and corruption”.
MTN’s response and legal battle history
MTN has denied all allegations of wrongdoing and plans to challenge the SCA ruling at the Constitutional Court. The company emphasises that the SCA’s decision on jurisdiction does not address the merits of Turkcell’s claims, which remain untested in court.
MTN also points to a 2012 independent investigation led by UK jurist Lord Leonard Hoffmann, which cleared MTN and its executives of any conspiracy or bribery in securing the licence. The investigation called Turkcell’s allegations “a fabric of lies, distortions, and inventions.”
The legal dispute dates back to 2013, when Turkcell initially filed suit in the US courts before retracting and pursuing the matter in South Africa. Turkcell accuses MTN of using bribery and corruption to overturn the tender process and seeks damages from MTN and former executives involved in the licensing negotiations.
The High Court had previously ruled that South African courts lacked jurisdiction because the alleged misconduct occurred outside South Africa. However, the SCA’s recent ruling sets a precedent by allowing South African courts to hear cases involving alleged bribery by South African nationals of foreign officials, rejecting immunity claims based on sovereign or “Act of State” doctrines.
This development marks a crucial phase in a decade-long legal battle. Turkcell is preparing to present its evidence in South African courts, while MTN seeks to continue its legal defence through the highest judicial avenues available.