MTN’s Iran ‘dealings’ could severely hurt US-SA relations

THE US Department of Justice's (DoJ ) investigation into MTN's alleged bribery and corruption in securing contracts in Iran and Afghanistan could significantly impact relations between the two countries, already strained due to existing trade tensions.

That is according to African Politics and International Relations, an expert at the University of Limpopo, Professor Kgothatso Shai following reports that MTN chairman Mcebisi Jonas, also President Cyril Ramaphosa's envoy to US, has spoken out against a relentless campaign he believes is aimed at isolating SA, labelling it a concerted effort by influential individuals to render the country a pariah state. 

MTN Group is facing a US DoJ grand jury investigation related to its operations in Afghanistan and Iran, including allegations of bribery to secure a mobile phone license in 2005, during Ramaphosa's tenure as MTN chairman.

President spokesperson Vincent Magwenya did not respond to a request for comment on the allegations that MTN bribed Iranian officials to secure a mobile phone license during Ramaphosa's tenure.

The DoJ grand jury probe relates to MTN's past operations in its former subsidiary in Afghanistan and its 49% stake in Iranian telecom company Irancell. 

MTN Group has confirmed that it has been approached by its external US counsel regarding a DoJ grand jury investigation. 

MTN Chief Corporate Affairs Officer Nompilo Morafo said the telecommunication company is cooperating with the DoJ and voluntarily responding to requests for information. 

She said MTN exited its Afghanistan business in early 2024.

“MTN has not been charged with any violations of the law. As we are dealing with an ongoing investigation, MTN is limited in what it can say at this time. We will provide further information when we are able to do so,” she said.

This development comes amid a backdrop of tense ties between Pretoria and Washington, DC, which saw President Donald Trump imposing punitive measures on South African exports.

Shai said relations between the US and SA have hit a low point, not seen since pre-1994 and the most recent investigation is likely to further strain ties between the two nations, even without conclusive evidence.

"The US tends to prioritise beliefs over evidence in its foreign policy decisions, particularly when it serves the interests of white supremacy and privilege in both countries," he said. 

Shai said the credibility of the investigation and the US Department of Justice's independence from politics, will be crucial in determining the outcome.

"There appears to be a well-coordinated agenda to undermine the government of SA and project our state as a pariah," he said.

Dr Frank Lekaba, a senior lecturer at the Wits School of Governance and international relations expert, said the US's investigation into MTN's dealings could either be exploited by the current US opposition to further strain relations with SA or it might not necessarily worsen diplomatic ties between the two nations.

Lekaba cites the unpredictable nature of US foreign policy and ongoing talks between Presidents Ramaphosa and Trump about the Ukraine-Russia war as factors. 

He believes the impact of the investigation into MTN's dealings on SA-US relations is uncertain.

However, he said, it could also exacerbate tensions, particularly among US factions critical of South Africa.

“It is a multiplicity of issues at play that one we can not say with certainty that this will impact or may not impact the diplomatic relation between the two countries,” he said.

Cape Times