Telecommunications operator MTN is heading to the Constitutional Court in relation to the drawn-out case relating to its operating licence in Iran.
The group said it intended to approach the Constitutional Court to appeal against the decision, handed down by the Supreme Court of Appeal on Tuesday, in which it upheld aspects of the appeal lodged by Turkish company Turkcell.
The appeal was lodged against a High Court judgment, in which the court had dismissed Turkcell’s case against MTN on the basis that the SA courts did not have jurisdiction.
“The SCA has set aside the judgment and decided that the SA courts do have jurisdiction. The SCA, however, upheld the High Court ruling that Iranian law is applicable to key aspects of the dispute,” MTN said on Wednesday.
“The decision to uphold the appeal does not relate to the merits of Turkcell’s claims or the allegations made against MTN Group, which have not yet been tested in court. MTN has always maintained that the Turkcell litigation was without merit and has expressed confidence that it would successfully defend these proceedings,” it said.
The court action dates back to 2013, when Turkish company Turkcell Iletisim Hizmetleri and its wholly owned subsidiary, East Asian Consortium (EAC) instituted legal action in the High Court of SA against MTN and certain of its subsidiaries.
Turkcell and EAC sought substantial damages from MTN pursuant to allegations of impropriety in the award of the first private mobile telecommunications licence in Iran.
Turkcell accused MTN of paying bribes to SA and Iranian officials to secure 49% of Irancell Telecommunications Services in 2005, which gave it a licence to operate in the country.
Turkcell had been demanding $4.2bn in damages, plus interest, based on profit Turkcell says it could have made had it been able to keep the licence.
MTN has always denied the charges.
With Mudiwa Gavaza
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