Business
MTN Iran corruption allegations under investigation by South Africa police
The Iran scandal, painted in Turkcell papers as a “staggeringly brazen orchestra of corruption”, has thrown a harsh spotlight on MTN, a US$31 billion company.
It was set up with government help in 1994 as the first black-owned company after the end of apartheid, and has grown into one of the greatest success stories to emerge from the continent’s biggest economy.
MTN shares took a beating when details of the Turkcell allegations first emerged, falling 7 percent in three days amid fears the legal tussle might hamper the growth of its Irancell unit, which accounts for nearly 10 percent of group revenue.
As well as piling more pressure on MTN executives, the Hawks probe is likely to generate more unflattering coverage of the business practices of a firm that has become adept at winning in emerging and frontier markets across Africa and the Middle East.
It has been reported this week that Irancell had managed to obtain sophisticated U.S. computer equipment despite U.S. sanctions on such kit designed to curb Iran’s nuclear program.
MTN shares were unaffected by news of the Hawks investigation, edging up 0.1 percent by 1221 GMT in line with the wider Johannesburg stock market.
