Right of Reply: MTN Group rejects claims of terrorism support, vows to defend US cases

Key topics:Legal & Ethical Focus: MTN Group faces lawsuits and a DOJ investigation but maintains its commitment to human rights and ethical conduct.Ongoing Legal Cases: The company is defending itself against plaintiffs in the US and cooperating with a grand jury probe.Business as Usual: Despite these challenges, MTN Group continues to show strong financial performance and focus on its core business.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..Issued by MTN Group.MTN Group’s purpose is to enable the benefits of a modern connected life for everyone across our markets. Our strategy is to lead digital solutions for Africa’s progress.Last year, we served 298 million customers across 16 markets. We are committed to respecting and protecting human rights within our markets and sphere of influence. Our digital products and services play a critical role in advancing and protecting human rights. We strive to provide these products and services in a manner that does not impede or infringe on the rights of people.Since 2006, MTN Group has held a minority investment in Irancell, which is not under MTN Group’s operational control. Under the current sanctions regime against Iran, the company has not deployed any capital into the business and has not extracted capital or dividends.MTN has a robust ethics and compliance programme that is designed to ensure compliance with law, including international trade and sanctions regulations.MTN Group has deep sympathy for those who have been injured or lost loved ones as result of the tragic conflicts in Iraq and Afghanistan. MTN Group is respectfully defending cases brought against it by plaintiffs in the United States, as the company was not involved in those tragic events, and maintains that the plaintiffs have sued the wrong defendants in the wrong courts.The referenced ruling in the New York court is a preliminary ruling, based solely on the plaintiffs’ unproven allegations, which Mr. Reddick acknowledges. The court’s order does not mean that MTN Group has lost the case. Nor does the court offer any view on the strength of the evidence, because it has seen none of the evidence.Under U.S. law and procedures, at this preliminary stage of the proceedings MTN Group could not challenge the factual allegations made against the company in the plaintiffs’ complaint, and the court was required to proceed on the assumption that the plaintiffs’ allegations are true. In the decision denying the motion to dismiss, the court merely ruled that the allegations in the complaint – if ultimately proven to be true at trial – provide sufficient basis for the court to exercise jurisdiction over MTN and for the case to proceed. It is therefore not correct to characterize the court ruling as an affirmation of the truth of the allegations. In the next phases of the litigation, MTN will have an opportunity to test and refute the evidence that the plaintiffs put forward, and to put forward its own evidence to counter plaintiffs’ allegations.MTN has been approached, through its external US counsel, regarding a US Department of Justice (DoJ) grand jury investigation relating to MTN Group, its former subsidiary in Afghanistan and Irancell. MTN is cooperating with the DoJ and voluntarily responding to requests for information. MTN exited its Afghanistan business in early 2024.MTN has not been charged with any violations of the law. As we are dealing with an ongoing investigation, MTN is limited in what it can say at this time. We will provide further information when we are able to do so.MTN continues to deliver strong operational and financial performance, with robust growth across our markets and a clear focus on connecting and empowering communities.MTN is committed to the highest standards of ethical business practice and compliance with international laws where they are applicable. We are engaging transparently and constructively with all relevant authorities and will continue to do so.

Right of Reply: MTN Group rejects claims of terrorism support, vows to defend US cases

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