Cabinet urges de-escalation in Israel-Iran conflict
Cabinet has raised concern about conflict between Israel and Iran, intensified by recent US air strikes on Iranian nuclear sites, urging the countries to turn to the negotiating table.
Speaking on behalf of the cabinet after a meeting on Wednesday, minister in the Presidency Khumbudzo Ntshavheni called for peace as the conflict has claimed lives in both countries, with hundreds injured.
'Cabinet calls for an urgent de-escalation of hostilities and full compliance with international law by all parties to prevent further human suffering.
'Cabinet further calls on the US, Israel and Iran to create room for constructive dialogue and give the UN the opportunity to lead the peaceful resolution of disputes.'
Listen to cabinet message:
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It even found that although a $400,000 payment had been made to an Iranian intermediary, the money's purpose couldn't be determined – and was irrelevant to Turkcell's central claims. MTN also argues that Turkcell failed to comply with Iranian laws after a shift in government policy. 'They failed to adjust their shareholding in time,' MTN argues, 'and were lawfully excluded from the process.' As for the most salacious allegations – military gear and political favours – MTN says it would be impossible for its actions to have altered Iranian legislation or international diplomacy. The Hoffmann Report indicates that a general election took place in Iran on 20 February 2004, which resulted in a new parliament taking office in May 2004. This new Iranian parliament was overwhelmingly dominated by conservatives who opposed the government's policy of privatisation and foreign inward investment, particularly in relation to the cellphone service. The Single Article Act, designed to strengthen financial discipline, stemmed from this shift in parliamentary power. Snookered in ownership Following the Single Article Act, the parliament passed another significant piece of legislation in February 2005, known as the Irancell Act. This act imposed further conditions, requiring that 51% of the shares in the operating company be held by Iranian entities and that all board decisions require the approval of at least 50% of the shareholders. This was understood to be due to concerns about foreign entities becoming heavily involved in what was considered critical infrastructure in Iran. These legislative changes created significant obstacles for Turkcell, which had initially won the tender with a plan to control 70% of the shares. 'Turkcell was given multiple opportunities to negotiate with its existing partners to reach a compliant deal, but they didn't do that or they were not able to do that,' MTN's legal team argues. The team points to a specific deadline – 4 September 2004 – when the Ministry of Telecommunications demanded a compliant deal from Turkcell, which the Turkish company failed to deliver. 'Turkcell has never explained how MTN's [alleged] corrupt practices would have led to a change in national legislation,' MTN's lawyers emphasise, arguing that their client was simply better positioned to navigate Iran's evolving regulatory landscape. After Turkcell's 2012 US complaint, MTN commissioned the independent investigation led by Lord Hoffmann, a retired British Supreme Court judge. But Turkcell has 'strongly rejected MTN's repeated reliance on the Hoffmann Report', with Soule calling it 'unreliable and irrelevant' to current proceedings. The Turkish company has criticised the investigation, claiming: Conflicts of interest: Lord Hoffmann's daughter, Jennifer, worked for MTN Mobile Money during the relevant 2004-2006 period and also in the MTN Banking joint venture with Standard Bank, which was involved in the financial transfers. 'Lord Hoffmann had a huge conflict of interest,' Soule argues. Lack of independence: The committee was composed of MTN non-executive directors and used MTN's own external lawyers (Freshfields Bruckhaus Deringer) instead of independent counsel. The committee even thanked the Islamic Republic of Iran for support – problematic given Iran's alleged involvement in the wrongdoing. Insufficient rigour: The committee didn't actually interview key witnesses like former MTN director in Iran Chris Kilowan, then commercial director Irene Charnley (to whom Jenny Hoffmann reported) or former MTN CEO Phuthuma Nhleko to determine credibility, relying only on written statements prepared with lawyers' help. The committee did not independently seek documents, relying instead on what MTN's lawyers provided. Turkcell characterises the report as essentially 'a PR exercise' to review curated evidence and reach predetermined conclusions. The company declined to participate owing to concerns about the committee's structure and independence. Where we are now In April this year, the Supreme Court of Appeal handed Turkcell what it called a 'procedural win' – confirming that South African courts do have jurisdiction to hear the matter. It dismissed MTN's argument that South Africa cannot police corporate misconduct committed abroad. 'Not on our watch' was how the court framed its message to South African firms doing business in murky waters. MTN is now seeking leave to appeal to the Constitutional Court in a last-ditch effort to stop the case from going to trial. Turkcell has filed its opposition. 'The report never seriously asked: what if we did do some of these things?' says Soule. 'It only asked: is Turkcell's story perfect?' MTN has argued that Iranian courts would offer a fair alternative venue for the dispute, but Turkcell has strongly rejected that suggestion. The Turkish company cites 'well-documented concerns regarding judicial independence and due process' in what it describes as a 'religious dictatorship where dissent is not tolerated'. More practically, Turkcell argues that Iranian courts wouldn't be able to compel MTN executives, who reside in South Africa, to appear and testify – a crucial limitation given the nature of the allegations. But the fact remains that Turkcell also refused to participate in the Hoffmann inquiry, claiming its witnesses would not be safe and due process could not be guaranteed in Iran. Although the Supreme Court of Appeal agreed that Iranian law would apply to aspects of the case, Turkcell sees this as its 'only and probably final opportunity' to get a substantive ruling on MTN's alleged misconduct. If it proceeds, this would become one of South Africa's most explosive corporate trials. MTN also faces what amounts to a 'reputational trial in the court of public opinion', regardless of the legal outcome. The company holds a 49% minority stake in Irancell, which it says is not under MTN Group's operational control. The case also highlights claims of a complex interplay between corporate interests and state foreign policy. President Cyril Ramaphosa served as MTN Group chairperson (a non-executive role) more than 12 years ago, resigning from the position in May 2013. But MTN asserts that any suggestion of improper benefit from his time at the company is 'false and misleading', and emphasises that it does not conduct business in alignment with government foreign policy. The Constitutional Court is expected to announce its decision on MTN's leave to appeal within the next three months. MTN's other Iran headache MTN just can't catch a break in the Middle East, with new scrutiny coming from the US. Congresswoman Elise Stefanik has written a letter urging Bank of New York Mellon (BNY Mellon) to investigate its ties with MTN. Her letter highlights concerns about MTN's links to Iran, Hamas and President Cyril Ramaphosa's finances. She calls for BNY Mellon to halt its role as the bank handling MTN's shares in the US, cooperate with US authorities, and disclose its involvement with MTN and its Iranian affiliates. A pending lawsuit, Zobay v MTN, accuses MTN of financing terrorism, as defined by the US Anti-Terrorism Act. Stefanik claims significant legal precedent exists, which MTN denies. Senior MTN executive Nompilo Morafo rejected Stefanik's claims in an interview with Daily Maverick, stating that the allegations have not been tested in court. Morafo also dismissed accusations against Ramaphosa, who chaired MTN 12 years ago, and insisted MTN has no operational control in Iran, holding only a minority share in Irancell. MTN says it 'remains committed to human rights', and its directors have pushed for a pivot to the company's pan-African strategy, despite litigation and pressure from US legislators. DM
