MTN faces US grand jury probe over Iran and Afghanistan operations
MTN Group, South Africa’s largest telecom operator, is under investigation by the United States Department of Justice (DOJ) for its past operations in Iran and Afghanistan.
The company confirmed it was contacted through its US legal counsel regarding a grand jury probe into its former Afghan subsidiary and its 49% stake in Iran’s Irancell, which is partially government-owned.
MTN said it is cooperating fully and maintains it has complied with all laws.
The investigation follows civil lawsuits filed in US courts by American veterans and families of soldiers killed in Iraq and Afghanistan.
Plaintiffs allege MTN’s involvement in Irancell indirectly supported militias hostile to US forces. MTN has denied the claims.
MTN entered Iran in 2006 and operated in Afghanistan until 2021. Analysts say the probe could examine potential violations of US sanctions or anti-terrorism laws.
Despite the legal uncertainty, MTN reported strong interim results, with service revenue up 17.5% to R101.3 billion ($5.6 billion) and adjusted earnings per share rising 76.1%. Shares dipped slightly on the Johannesburg Stock Exchange after the disclosure.
MTN has not provided details on the investigation’s timeline but continues to cooperate with authorities.