US senator alerts MTN case to treasury

 ·4 Mar 2013
MTN Spy 2

A senior United States Senator has called on the new treasury secretary, Jack Lew, to “recognise” that mobile operator MTN has played a role in human rights abuses through its stake in MTN Irancell.

According to an article in the Financial Times, James Inhofe – a Republican from Oklahoma – claims that through the use of its technology, telecommunications equipment maker Ericsson also assisted the Iranian state commit human rights abuses.

In a letter to treasury, Inhofe urged treasury to conduct “oversight” into Ericsson’s operations in Iran as he believes they represent a national security risk and threat to US foreign policy.

The FT reported that the senator also requested Lew to “recognise” that MTN has played a role in human rights abuses, as well.

MTN investigated

In 2012, The SA Human Rights Commission (SAHRC) received a request to investigate MTN for human rights violations in Iran.

The operator is alleged to have facilitated the surveillance of Iranian opposition activists by allowing phones to be tapped.

Turkcell, the group’s rival operator in Iran, has also accused MTN of bribery in obtaining its mobile licence for Iran.

In February, MTN released the findings of the Lord Hoffmann committee, which it set up to review the allegations made by Turkcell in the legal case brought against MTN in the United States.

Lord Hoffmann’s Committee determined that the Turkcell allegations are without foundation.

The Turkcell vs MTN court battle is currently on hold, pending a US Supreme Court ruling whether the case can be heard in a US court.

“MTN did not cause Turkcell to lose ‘its’ licence in Iran, as Turkcell claims,” the operator has said, adding that, on charges of human rights abuse, “such allegations are both false and offensive”.

The MTN Group owns 49% of MTN Irancell, through its subsidiary MTN International.

MTN says that its role in Iran is as a technical partner.

“It is a non-controlling shareholder. Fewer than 30 MTN seconded expatriate staff are employed at Irancell, out of around 2,000 people,” the operator said.

MTN is expected to publish its results for the year ended December 2012, on Wednesday (6 March). In midday trade on the JSE, shares in the group declined 1% – or R1.91 – to R179.34.

More on MTN

Turkcell’s MTN lawsuit put on hold

Hoffmann report clears MTN in Turkcell case

Turkcell’s MTN lawsuit put on hold

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