MTN Faces US Investigation Over Past Operations in Afghanistan and Iran

South Africa’s largest telecoms operator, MTN, has once again found itself in the global spotlight, this time under investigation by the United States Department of Justice (DoJ). The probe, confirmed by MTN in its interim financial results, relates to the company’s former business dealings in Afghanistan and its controversial stake in Iranian mobile operator Irancell.

What the US is Investigating

According to MTN, the DoJ has approached the group through its US legal counsel, confirming a grand jury investigation is underway. Such juries don’t determine guilt but decide if enough evidence exists to bring formal criminal charges. That means MTN could, in theory, be dragged into a trial in the US depending on the findings.

At the heart of the inquiry are allegations that MTN once paid protection money to armed groups in Afghanistan to safeguard its operations. Added to this are long-standing questions around how MTN secured its licence in Iran, a deal that has been shadowed by controversy since 2006.

The Turkcell Dispute

The Iranian chapter of MTN’s expansion has already sparked years of legal wrangling. Turkish rival Turkcell has long accused MTN of securing its 49% stake in Irancell through corrupt practices, claiming it was unfairly sidelined in favour of the South African company. The dispute has been heard in both South African and international courts, but the allegations continue to haunt MTN’s reputation.

Political Undercurrents

The timing of the DoJ’s investigation also comes against a backdrop of strained diplomatic ties between Pretoria and Washington. Recently, the Trump administration slapped 30% tariffs on South African exports, worsening an already tense trade relationship. Add to this American criticism of South Africa over alleged human rights issues, and MTN’s troubles are landing in a highly charged political climate.

Market and Public Reaction

For ordinary South Africans, the news is both worrying and familiar. MTN, a brand many rely on daily for calls and data, is once again caught up in a global controversy that could cost billions in fines or settlements. On social media, the reaction has been a mix of frustration and fatigue. Some users have called it “another embarrassment for SA Inc,” while others worry about the knock-on effects for local jobs and investors if the case escalates.

What Happens Next?

For now, MTN insists it is cooperating fully with US authorities and providing information voluntarily. The group has promised to update investors and the public on “any material developments” as the case unfolds.

But with the DoJ involved and a grand jury at work, this is no longer just a corporate headache. It’s a test of how South African companies are viewed abroad, especially when their expansion strategies intersect with geopolitics and allegations of corruption.

Source:IOL 

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