“`html
US Grand Jury Probes MTN Over Alleged Violations in Iran and Afghanistan
Telecom Giant Faces US Justice Department Scrutiny
Africa’s largest mobile operator, MTN Group, finds itself under the microscope of American justice as the US Department of Justice launches a grand jury investigation into its past operations in Iran and Afghanistan. The Johannesburg-based company disclosed the probe in its 2025 interim financial results, revealing that investigators are examining potential violations of US sanctions in these politically sensitive regions.
MTN currently holds a 49% stake in Irancell, while its Afghanistan operations were recently divested. Both countries remain subject to various US sanctions – comprehensive measures against Iran and targeted restrictions against specific individuals in Afghanistan.
Cooperation Amid Uncertainty
“MTN is cooperating with the DoJ and voluntarily responding to requests for information,” the company stated. “The company will update the market as appropriate on any material developments in the matter.”
While grand juries don’t determine guilt, their findings could lead to formal charges against the telecommunications giant. This development comes at a particularly sensitive time for MTN, which faces multiple legal challenges across different jurisdictions.
Mounting Legal Troubles
The Afghanistan allegations stem from a class-action lawsuit filed by families of deceased US soldiers who accuse MTN of violating America’s Anti-Terrorism Act. Plaintiffs claim the company provided material support to terrorist groups by allegedly paying protection money to the Taliban, thereby endangering American military personnel.
Meanwhile, MTN’s Iranian operations have drawn scrutiny for nearly two decades. Turkish competitor Turkcell continues its legal battle, recently filing papers with South Africa’s Constitutional Court in a $4.2 billion dispute over the Irancell license. Turkcell alleges MTN secured the lucrative contract through bribery after initially losing the bid.
Leadership Under Pressure
Current MTN Group CEO Ralph Mupita sought to downplay the gravity of the situation during a media briefing, emphasizing that the company hasn’t been formally accused of wrongdoing. “A lot of these things are a legacy…set of issues,” Mupita stated, adding that South African government officials remain informed about the developments.
The investigation’s timing raises diplomatic eyebrows, coming amid strained relations between South Africa and the Trump administration. President Cyril Ramaphosa, who chaired MTN’s board from 2002-2013, recently appointed current MTN chairman Mcebisi Jonas as special envoy to Washington following the expulsion of South Africa’s ambassador over controversial remarks about US foreign policy.
What Comes Next?
Legal experts suggest the grand jury investigation could take months, if not years, to conclude. Potential outcomes range from dismissal of the matter to substantial fines or even criminal charges. For MTN shareholders, the uncertainty adds another layer of complexity to the company’s ongoing efforts to streamline its operations across Africa and the Middle East.
As the telecom giant navigates these choppy legal waters, industry analysts will be watching closely to see how these developments impact MTN’s strategic direction and financial performance in key markets.
Stay updated with breaking business news from TechCentral on WhatsApp.
Related Coverage
- MTN vs Turkcell: $4.2bn bribery lawsuit heads to SA’s top court
- Former MTN bosses approach SA’s top court in Turkcell case
- Ferdi Moolman appointed new CEO of MTN South Africa
“`