Hackers hit Iran's largest cryptocurrency exchange, while global crypto markets tumble after US bombing
At the intersection of geopolitics and cryptocurrency, a sophisticated cyberattack on Iran's financial infrastructure has reverberated through global crypto markets, offering sobering lessons for regulators worldwide.
In what appears to be one of the most politically motivated cryptocurrency heists in history, the pro-Israel hacker group Gonjeshke Darande (Predatory Sparrow) infiltrated Iran's largest crypto exchange, Nobitex, making off with between R1.5-billion and R1.8-billion in bitcoin, ethereum, dogecoin, XRP and solana.
But here's the twist: it wasn't about the money. Instead, the hackers 'burned' the stolen cryptocurrency, permanently removing it from circulation by sending it to inaccessible wallet addresses — a digital equivalent of setting cash on fire.
The attackers used provocative 'vanity addresses' containing explicit anti-terrorist messages, making their political motivations crystal clear.
After the IRGC's 'Bank Sepah' comes the turn of Nobitex
WARNING!
In 24 hours, we will release Nobitex's source code and internal information from their internal network.
Any assets that remain there after that point will be at risk!
The Nobitex exchange is at the heart of the… pic.twitter.com/GFyBCPCFIE
— Gonjeshke Darande (@GonjeshkeDarand) June 18, 2025
'Unlike typical hacks for financial gain, the intent here appears to have been politically motivated, aiming to take funds away from the regime,' according to an analysis of the incident.
The same group also claimed responsibility for simultaneously destroying data at Iran's state-owned Bank Sepah, which they accused of funding Iran's military.
The sophistication of these attacks has led security experts to suggest they're beyond the capabilities of typical activist hackers and more in line with nation-state operations.
Iran's crypto curfew response
Iran's central bank responded by imposing strict operating hours on domestic crypto exchanges, limiting them to 10am-8pm daily. This 'crypto curfew' appears designed to prevent capital flight during periods of high geopolitical tension and assert greater control over citizens' cross-border cryptocurrency transactions.
It's not the first time Iran has flexed its regulatory muscles over crypto. In December, the central bank temporarily shut down all exchanges to prevent the national currency, the rial, from depreciating further.
The timing couldn't be worse for Iranian crypto users. Chainalysis notes that Nobitex plays a critical role in Iran's crypto ecosystem, processing more than R200-billion in total inflows, significantly more than the next 10 largest Iranian exchanges combined.
For Iranian users cut off from traditional finance due to international sanctions, it serves as a crucial gateway to global crypto markets.
Lessons for Africa
When national currencies face devaluation due to economic instability or sanctions, cryptocurrencies and stablecoins can serve as stores of value. This is particularly relevant in African countries experiencing high inflation or currency instability.
Unlike traditional financial systems that can be easily shut down or restricted by governments, cryptocurrency networks operate across borders and are more difficult to completely block, though governments can still restrict access to exchanges and on-ramps.
Iran's crypto curfew shows how quickly governments can impose restrictions during crises. This uncertainty can affect market access and asset values.
The key is staying informed about local regulations, using reputable exchanges with strong security practices, and understanding that while cryptocurrency can provide financial flexibility during uncertain times, it's not immune to geopolitical shocks and market volatility.
Global market meltdown
The crypto market's reaction to escalating Middle East tensions has been swift and brutal. Following US airstrikes on Iranian nuclear facilities and President Donald Trump's hints at potential regime change, global cryptocurrency markets shed more than R20-billion in liquidations within 24 hours.
Bitcoin crashed below the six-figure mark for the first time in 45 days. Ethereum plummeted to its lowest price since May, while solana dropped by 8%.
The Block's GMCI30 index, tracking the top 30 cryptocurrencies, slid by nearly 10% over the week, with smaller altcoins faring even worse — small caps plunged by 17% and AI-linked tokens plummeted by 20%.
Perhaps most tellingly, Iran's parliament urged leaders to consider closing the Strait of Hormuz, a crucial artery for global oil shipments. While Iran has never successfully closed the strait, the mere threat rattled markets and highlighted how quickly geopolitical tensions can spill over into financial markets.
The selloff challenges the narrative of bitcoin as a 'safe haven' asset during geopolitical uncertainty. Instead of flocking to crypto, traders opted to cash out, suggesting that fear temporarily outweighed any safe haven appeal.
African lessons in regulatory balance
The Iranian situation offers valuable lessons for African regulators grappling with how to approach cryptocurrency regulation. Sub-Saharan Africa has the world's highest rate of stablecoin adoption at 9.3%, with Nigeria ranking as the world's second-largest adopter of digital assets.
But the Nobitex hack serves as a reminder of the cybersecurity risks associated with centralised exchanges. African countries and exchanges need robust security protocols, regular audits, and clear incident response plans to protect user funds and maintain trust.
Perhaps most importantly, the Iranian situation demonstrates the dangers of regulatory ambiguity. Iran's central bank warnings conflict with the pervasive use of crypto in the country, creating uncertainty that can be exploited by bad actors or lead to poorly designed reactive policies. DM
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The Citizen
7 hours ago
- The Citizen
SA not ready for fallout if Israel-Iran ceasefire fails, warns UJ professor
As the ceasefire between Iran and Israel holds, the world watches with bated breath to see what will happen next between the two regional powers. To gain insight into the situation, Caxton Local Media spoke to Dr Suzy Graham, professor in the Department of Politics and International Relations at the University of Johannesburg. Discussing the ceasefire, Graham explained that although it is still early days, the truce holds real potential, though it remains inherently fragile. 'Its longevity hinges on disciplined diplomacy, credible inspections, and political will from all actors. If any of these break down, especially due to hardliners or indirect aggression via proxies, the truce could unravel quickly,' she said. For now, however, the signs are cautiously optimistic. A ceasefire on edge: What's holding it together? Graham believes the ceasefire was primarily driven by a rapid cycle of escalation and daring diplomacy aimed at avoiding further catastrophic conflict. Although the ceasefire appears to be working, she warned that initial breaches from either side could lead to its deterioration. She described the thought of a third world war as unthinkable. 'Despite social media speculation, the probability of a full-scale World War III remains low, but not zero,' Graham said. South Africa's position: Legal, vocal, and diplomatic Speaking about South Africa's stance on the Israel-Iran conflict and how it aligns with the country's broader foreign policy, Graham said South Africa will almost always call for dialogue in any conflict situation. 'The South African government has been vocal in strongly condemning the recent military strikes on Iran, describing the attacks as violations of international law. It has urged all parties, Iran, Israel, and the USA, to engage in UN-led dialogue, emphasising diplomacy, restraint, and nuclear inspection,' she explained. Regarding the potential impact on South Africa if the conflict reignites and becomes a wider regional crisis, Graham said the country would likely continue championing international law, human rights, and nuclear non-proliferation. She noted that South Africa could strengthen its moral leadership among Global South and Muslim-majority countries. 'At the same time, the country could face intense backlash from Israel and Western allies, particularly the USA, Germany, and the UK, especially if Pretoria doubles down on its International Court of Justice genocide case or calls for sanctions. 'South Africa could see reduced goodwill from Western investors or governments, especially if tensions rise over its international legal campaigns or alignment with Iran.' 'In the immediate term, South Africa would likely call for a ceasefire, condemn aggression, and activate international and legal channels. In the short term, it might push for UN and BRICS statements and engage the African Union and Global South partners. 'In the mid-term, it would need to manage economic fallout, reinforce public diplomacy, and maintain BRICS plus solidarity. In the longer term, South Africa could use the crisis to push for UN Security Council reform, nuclear disarmament, and multipolar global governance.' Graham emphasised that if South Africa is drawn into the conflict, its role would be principled, vocal, and legalistic, not military. 'It may be drawn in politically, but not militarily,' she said. 'The country's focus would remain on shaping the normative global order, not engaging in hard power projection.' What escalation could mean for South Africa Although South Africa would not be militarily involved, Graham said a wider Middle East conflict would hit its economy hard, particularly through rising fuel prices, increased trade costs, and inflation. 'An escalation in the Israel-Iran conflict could seriously disrupt global oil flows, and South Africa, as an energy-importing nation, would feel the effects quickly and deeply. 'The country's inflation rate, currency, fiscal stability, and household livelihoods would all come under pressure.' When asked if South Africa is prepared for possible knock-on effects of war, such as cyberattacks or disruptions in trade, Graham said the country is not fully ready for the complex and interconnected consequences of a major regional war involving Iran and Israel. 'While it has some institutional frameworks and economic policy tools, South Africa lacks a coordinated national resilience strategy, particularly for cyber threats and maritime trade disruptions. 'A greater focus on strategic planning, inter-agency coordination, and public-private resilience building is urgently needed.' Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel. Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal. Read original story on At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Daily Maverick
8 hours ago
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Ties that bind: Inside Mashatile's inner circle behind SA's new lottery operator
A cache of pictures and video shows the cozy ties between Deputy President Paul Mashatile and the inner circle behind the new lottery operator, Sizekhaya Holdings. It also introduces a key new figure linking them: Sbu Shabalala, the disgraced former Adapt IT chief executive. Photographs and footage reveal the close personal relationships behind the company that clinched the multibillion-rand lotto licence and their links to Deputy President Paul Mashatile. They provide insight into the powerful people who orbit the Deputy President, with a new name surfacing: former Adapt IT CEO Sbu Shabalala. Following amaBhungane's reporting, members of Parliament put the heat on Minister of Trade and Industry, Parks Tau, asking him to account for possible conflicts of interest in the licence bidding process and award. AmaBhungane understands that Sbu Shabalala is engaged to Khumo Bogatsu, Mashatile's sister-in-law, and is also the cousin of Moses Tembe, the Durban businessman who leads Sizekhaya. Earlier this week amaBhungane revealed that Bogatsu is the twin sister of second lady Humile Mashatile and co-owns Bellamont Gaming with Tembe. Bellamont Gaming is a shareholder in Sizekhaya Holdings, which has received the nod from Trade, Industry and Competition Minister Parks Tau to take over the national lottery licence, valid for eight years and generating about R7-billion annually. Shabalala is believed to be a key person helping knit together the politically connected group, which includes Sandile Zungu, a prominent member of Sizekhaya who reportedly co-leads the consortium with Tembe. Shabalala's presence is also controversial because of his spectacular fall from grace and departure from Adapt IT in 2021 following a violent incident at his estranged wife's home. He did not respond to questions. Power video The group's proximity to power is most strikingly demonstrated in a video circulated online around March 2025 – three months before the National Lotteries Commission (NLC) announced Sizekhaya as the winning bidder. The video captures the group, minus Zungu, at what appears to be a holiday gathering at an upscale resort. The scene is relaxed and familiar: Tembe in a crisp white shirt, his wife in jeans and a white shirt, Shabalala in a black shirt and shorts, Bogatsu in a sun hat and white blouse, Mrs Mashatile sipping a bottle of water and the Deputy President dancing. Deputy President Paul Mashatile taking a break from his demanding duties to spend quality time with family and friends. — MDN NEWS (@MDNnewss) March 15, 2025 Other photos, which we'll detail, place members of the group – including Zungu, Mashatile and their spouses – in each other's company at various personal and private events. The visuals are significant, not because powerful people have friends, but because these friendships sit at the nexus of a major public tender worth billions, raising questions about proximity, access and influence. In this regard, State Capture amply demonstrated the potential sway of informal networks over formal decision-making. The visuals add to concerns about the potential for political interference in the award of the hotly contested lottery licence, despite both Tau and Mashatile emphasising this week that the Deputy President played no role whatsoever in the lottery decision. In a response to amaBhungane, Sizekhaya said that 'the questions put forward to Advocate Bogatsu, Mr Tembe and Mr Zungu are irrelevant to the award and operation of the fourth national lottery licence and, as such, Sizekhaya is unable to respond to them. 'Sizekhaya reiterates that the allegations relating to 'interested, politically connected parties' are baseless, and that our directors and shareholders are fit and proper, as per the Lotteries Act.' Tembe told amaBhungane he did not believe any answer they gave would ever satisfy the 'insatiable appetite to incriminate' Mashatile: 'We're private individuals who've got private lives like you… You're welcome to continue down that trajectory without our cooperation.' He maintained that they had submitted all necessary declarations to the NLC and that the consortium won the bid on merit. Fallout As a result of amaBhungane's reporting, members of Parliament grilled Tau about Mashatile's possible conflicts of interest during a committee meeting on Tuesday. Tau indicated he had been unaware that the Deputy President's sister-in-law had an interest in Sizekhaya and said the matter would be investigated. Mashatile also later claimed he was unaware of Bogatsu's participation in the lottery bid. Several questions put to Mashatile's office went unanswered. Then, in a shocking turn of events, President Cyril Ramaphosa announced on Wednesday that he had taken a decision to remove Deputy Minister of Trade Industry and Competition Andrew Whitfield, who is also a member of the Democratic Alliance (DA). Whitfield's firing was allegedly owing to his official overseas visit in February, which took place without Ramaphosa's permission. A furious DA gave Ramaphosa 48 hours to remove other poor performing and corruption-implicated ministers, threatening 'consequences' if he did not. In a speech on Thursday, DA leader John Steenhuisen told Parliament that 'perhaps there is something even deeper at play here… Andrew Whitfield… had opposed an attempt to make suspect appointments, he was standing in the way of the looting that will follow from the Transformation Fund – and all of this in a department mired in corruption allegations involving the tender for the National Lottery.' In a statement on Friday, Ramaphosa said Whitfield's firing was unrelated to anything else. 'There is really no basis for suggestions that the dismissal of the former deputy minister is related to any other reason than his failure to receive permission to travel and adhere to the rules and established practices expected of members of the Executive of the Republic of South Africa,' he said. Shabalala's rise and fall For Shabalala – whose engagement to Bogatsu appears to have given him direct access to Mashatile – to be included in the Deputy President's circle provides him a comeback after his dramatic fall from grace. In May 2021, the Sunday Times reported that Shabalala's estranged wife, Neo Shabalala, sought a high court interdict against Shabalala, claiming he had hired armed men to assault her then partner, Sipho Nzuza, at her Zimbali home. Nzuza was eThekwini municipal manager, but was at the time out on bail of R50,000 after being arrested in connection with the now-notorious Durban Solid Waste case, in which he is still on trial alongside former Mayor Zandile Gumede. The Sunday Times report said Nzuza had been left in a critical condition after the attack and had his spleen and part of a kidney removed. Neo claimed in her affidavit that the assault – at which Sbu Shabalala was allegedly present – was meant to intimidate her into signing a divorce settlement that she believed was for less than what she was entitled to. She claimed Shabalala was invading her privacy by planting listening devices in her home and monitoring her cellphone. 'I do not feel safe in the slightest with the First Respondent [Shabalala] being near me or entering the immovable property,' she said. Although Shabalala maintained his innocence, saying the allegations were without merit, he consented to the interdict and the fallout resulted in his fall from grace. After taking a three month leave of absence to 'attend to personal matters' he ended up resigning from Adapt IT – the feisty tech company that he had founded and taken to a listing on the Johannesburg Securities Exchange. 'We are coming home' – and bringing friends In growing closer to Mashatile through Bogatsu, Shabalala is said to have also brought his cousin, Tembe, into enhanced proximity. Tembe co-directs and co-owns Bellamont Gaming with Bogatsu, the twin sister of Mashatile's wife, Humile. The company is a minority shareholder in Sizekhaya, and it is central to questions of a conflict of interest for the Deputy President. The company's name, Sizekhaya – which translates to 'we are coming home' – seems apt for a group bound not only by business but also by longstanding personal relationships. Aside from the revealing video, the group also appeared together in a photo previously published by amaBhungane, taken at St Paul's Anglican Church in February 2024, where they gathered to honour victims of a bus crash following the ANC's manifesto launch at Moses Mabhida Stadium. While the published photo focused on Tembe, Mashatile and his wife in the front row, a closer look reveals Shabalala standing behind them to the right and a partially obscured woman who may be Bogatsu to his left, just behind the red jacket. That year, Mashatile had frequented Tembe's home in uMdloti, KwaZulu-Natal, according to people in the area, and around the time the photo was taken it is said that Mashatile's presidential protection unit stayed over at Tembe's house for around six days. Coincidentally or not, Bellamont Gaming was registered just months before that visit, in December 2023 – four months after the NLC published the request for proposal (FRP) for the licence and just two months before bids were due. In that month, Zungu was seemingly celebrating a special moment with Tembe, and a photo shared to his WhatsApp story shows the pair holding a baby girl, allegedly Zungu's. Miami and milestones 2023 was also the year that Shabalala and Bogatsu allegedly celebrated their own milestone – their alleged engagement in August in Miami. Tembe and Reggie Kukama – a well-known friend and associate of Mashatile's – as well as Kukama's son were allegedly there to witness the special occasion. Kukama and Mashatile are members of the so-called 'Alex mafia', a group of successful businessmen and politicians who hail from Alexandra, Johannesburg. More pictures from the same year show Shabalala and Bogatsu arm-in-arm with Zungu and his wife, Nozipho. Another image shows the alleged couple with a close friend at a lunch hosted for the group. Another shows Bogatsu and Shabalala alongside the ANC's Tony Yengeni in an intimate lunch setting. On 2 February 2024, the day before the lottery bids were due, Shabalala, Bogatsu, Tembe and his wife, Princess Nandoyesizwe Tembe (formerly Zulu), were photographed at the opening of the Anele Tembe Library at Durban Girls' College. It was a special occasion for Tembe as a grieving father. His daughter Anele died in 2001 after falling from a balcony in the presence of her then fiancé, rapper Kiernan AKA Forbes. Forbes died two years later after being shot in Durban. 'Not enough to buy an aeroplane' In response to amaBhungane's questions, Tembe dismissed questions about his relationships as an 'invasion of privacy and humiliating'. He said that in his various positions, he has met 'almost all leaders across the political spectrum in their home and my home'. 'It's my duty to share notes on all issues that impact business and to influence them to inculcate and live Godly values. None of them (across the political spectrum) would ever say I discussed personal interests.' Mashatile, he said, had no financial interest in Sizekhaya's bid. He added that the bid was never discussed with Mashatile and confirmed his shareholding in Sizekhaya, but claimed that it was 'insignificant' and 'much less than 10%'. He added: 'The NLC takes the biggest chunk of the top line and winnings even higher. No shareholder would make money to buy an aeroplane.' Political alignment Tau and Mashatile have also risen through the political ranks together. From December 2000, Tau served as a member of the mayoral committee (MMC) in Johannesburg for various portfolios until 2009, when he was elected to the Gauteng ANC provincial executive committee. Around this time, from 1994 until 2009, Mashatile served as MEC in various portfolios, also in Gauteng. From 2007 to 2017, Mashatile served as provincial chairperson of the ANC in Gauteng and from 2011 to 2016 – the same period – Tau served as mayor of Johannesburg. Parliamentary grilling Tau maintained in a parliamentary portfolio committee meeting this week that the process of awarding the licence to Sizekhaya Holdings was fair, but said he would go back and investigate allegations of a conflict of interest between the Deputy President and his sister-in-law. 'Fit and proper is a continuous process. There are allegations that have been raised in the media,' Tau said. 'We have looked at those allegations and we will look at them because they are specific allegations; you cannot ignore them. It would be irresponsible of us to ignore what has been raised in the public domain by investigative journalists in the media and so on.' Tau added that they would get appropriate advice on whether the Deputy President's relationship constitutes a conflict of interest, political affiliation and any other considerations. DM
Daily Maverick
8 hours ago
- Daily Maverick
MTN faces legal reckoning: Turkcell's $4.2 billion claim exposes alleged corruption and bribery
A $4.2-billion corruption claim, including allegations of bribery and geopolitical interference: MTN's long-running Irancell saga is finally knocking at the doors of South Africa's highest court. More than two decades since Iran issued its first private mobile network licence, a tangled web of geopolitics, bribery allegations and courtroom battles has landed squarely at the feet of South Africa's Constitutional Court. First, some background. The stakes? A $4.2-billion claim. The claimant? Turkish mobile giant Turkcell. The accused? The MTN Group, South Africa's telecommunications crown jewel. At the heart of the matter lies the 2005 award of Iran's mobile licence to MTN – after Turkcell had already been named the winner. Now, after years of legal ping-pong, Turkcell's claim of corruption and foul play is finally inching towards a South African trial. MTN is trying to stop that from happening. The smoking gun Turkcell's legal counsel, New York-based King & Spalding's Cedric Soule, doesn't mince his words. 'MTN sought to obtain illegally what it could not win through honest competition,' he told Daily Maverick. The allegations, which are laid out in filings and interviews, read like an international spy thriller: Bribing foreign officials, including Javid Ghorbanoghli, then Iranian deputy foreign minister for the Africa Bureau, and South Africa's then ambassador to Tehran, Yusuf Saloojee; Trading influence at the United Nations nuclear watchdog, promising to help Iran avoid sanctions; Promising prohibited defence equipment, including Rooivalk attack helicopters and frequency-hopping radios, to sweeten the deal (Turkcell claims it has evidence, as yet undisclosed, that MTN communicated with Denel and Iranian officials). According to Turkcell, all this happened so that MTN could elbow its way into a $31-billion mobile market and walk away with the licence that should have gone to Turkcell. The deal was sealed days after South Africa abstained from a crucial vote related to Iran's nuclear programme at the International Atomic Energy Agency (IAEA) in late 2005. The vote concerned whether to report Iran to the UN Security Council for failing to comply with its IAEA Safeguards Agreement. But the abstention was seen as a deliberate act, motivated by concerns about the procedural fairness of the resolution and a desire to maintain the IAEA's authority. Specifically, South Africa's representative to the IAEA, Abdul Samad Minty, argued that the resolution was flawed and premature, as it bypassed the IAEA board of governors' role in the verification process. Minty said at the time that 'South Africa's commitment is to the IAEA's integrity and impartiality and is reluctant to undermine the agency's authority'. South Africa has also enjoyed good relations with Iran. Crucially, this abstention was not an isolated incident. South Africa also abstained on similar resolutions in 2006, highlighting a consistent stance on the matter. Soule says Turkcell 'won the licence fair and square' and that MTN's conduct undermined the integrity of international business. 'This case is about accountability,' he says. 'And it belongs in a South African courtroom.' A strong rebuttal MTN, for its part, has always dismissed Turkcell's claims as 'a fabric of lies' and a 'frivolous shakedown'. Its legal team, speaking about background exclusively to Daily Maverick, continues to lean heavily on the Hoffmann Report – a 2013 internal investigation led by British judge Lord Leonard Hoffmann. This report found 'no conspiracy,' labelled Turkcell's key witness a 'fantasist' and said MTN executives were in the clear. 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
