Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

MTN reviewing allegations after being named in U.S. complaint

Published 12/30/2019, 09:22 AM
© Reuters. FILE PHOTO: A worker walks past an outlet of South Africa's MTN Group in Johannesburg, South Africa

By Tanishaa Nadkar and Mfuneko Toyana

JOHANNESBURG (Reuters) - South African telecoms firm MTN (J:MTNJ) on Monday said it was reviewing allegations raised in a U.S. complaint which accuses several firms of paying protection money to militant Islamist groups in Afghanistan.

The complaint was filed in the United States District Court in the District of Columbia on Friday.

It alleges the firms violated the U.S. Anti-Terrorism Act by paying protection money to al Qaeda and the Taliban, thereby providing material support to known terrorist organizations.

It seeks damages on behalf of U.S. military members and civilians killed or wounded in Afghanistan between 2009 and 2017.

"MTN is reviewing the details of the report and is consulting its advisers but remains of the view that it conducts its business in a responsible and compliant manner in all its territories," the company said in a statement.

UK security services company G4S (L:GFS), which was also named in the lawsuit, declined to comment.

The complaint follows investigations by a group of large Washington-based law firms and alleges firms provided "material support" to known terrorists leading to numerous U.S. injuries and deaths, according to a statement by the law firms involved.

MTN spokeswoman Nompilo Morafo said the company could not yet respond directly to the specific allegations in the report as it was still going through the details.

"We cannot comment further than what we've said in the statement. We want a chance to review the allegations. We only received the suit on Friday and we're still going through it. I also can't confirm how long it's going to take," Morafo said.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

MTN is Africa's largest mobile operator and eighth biggest in the world with 243.7 million subscribers. It has previously faced scrutiny over its Iranian operations.

In February a former South African ambassador to Iran was arrested on charges that he took a bribe to help MTN win a $31.6 billion license to operate there.

The company has also faced costly disputes over unregistered SIM cards, tax and dividend repatriation in Nigeria.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.