South Africa’s Supreme Court of Appeal (SCA) has ruled that a $4.2 billion bribery lawsuit against telecommunications giant MTN, filed by Turkish rival Turkcell, may proceed in local courts.
The decision overturns a 2022 High Court dismissal, which had asserted that Iranian courts held jurisdiction over the dispute.
The case, ongoing since 2013, centers on Turkcell’s allegations that MTN orchestrated a bribery scheme to secure a lucrative Iranian telecom license in 2005. Turkcell claims MTN paid off Iranian and South African officials to revoke its initial contract award, enabling MTN to operate Iran’s first private mobile network. While MTN has consistently denied wrongdoing, calling the claims “without merit,” the SCA determined that South African courts hold jurisdiction because MTN’s headquarters are in the country and alleged illicit activities were planned locally.
MTN announced plans to appeal the ruling at the Constitutional Court, South Africa’s highest judicial authority. “The SCA upheld the High Court’s finding that Iranian law applies to key aspects of this dispute,” the company stated. “This decision does not address the merits of Turkcell’s claims, which remain untested.”
Turkcell’s legal team welcomed the ruling, arguing that dismissing the case would set a dangerous precedent. “If South African courts decline jurisdiction, entities engaging in cross-border bribery could exploit sovereign immunity doctrines to evade accountability,” said Turkcell counsel Cedric Soule and David Farber in prior statements.
The legal saga traces back to 2012, when MTN’s board commissioned an independent investigation into Turkcell’s allegations. The probe cleared MTN of misconduct, though critics argue the findings lacked transparency. Despite the High Court’s 2022 dismissal, Turkcell persisted, framing the appeal as a test of corporate accountability in transnational corruption cases.
Analysts note the SCA’s ruling raises stakes for MTN, which operates across 19 markets in Africa and the Middle East. While the telecom firm maintains no financial provisions for the lawsuit, a protracted legal battle could tarnish its reputation amid heightened scrutiny of corporate governance in emerging markets.
The case underscores broader challenges in adjudicating multinational corruption claims, where jurisdictional disputes often overshadow substantive hearings. For South Africa, the outcome may influence perceptions of its judiciary’s willingness to hold domestic firms accountable for overseas dealings. As MTN prepares its Constitutional Court appeal, observers stress that resolving the jurisdictional debate is pivotal to determining whether Turkcell’s allegations unproven but persistent will ever face full judicial scrutiny.
