A fresh volley has been fired at the MTN Group from the US, and this time it comes with congressional weight and accusations that go all the way up to the Union Buildings.
Congresswoman Elise Stefanik, House Republican Conference Chair, has written to Bank of New York Mellon BNY Mellon, calling for a sweeping investigation into the banks relationship with MTN, citing deeply troubling and well-documented concerns about the telecom giants links to Iran, Hamas and, somehow, Cyril Ramaphosas wallet.
Stefaniks four-pronged call to action includes asking BNY Mellon to halt its role as MTNs American Depository Receipt ADR sponsor, cooperate with US authorities investigating MTNs alleged violations of sanctions, and review and disclose the full extent of its involvement with MTN and its Iranian affiliates.
Her letter singles out a pending lawsuit in the Eastern District of New York, Zobay v MTN, which accuses the company of financing terrorism under the US Anti-Terrorism Act. Stefanik claims significant legal precedent confirming MTNs complicity already exists - which MTN flatly rejects.
MTN hits back
MTNs chief sustainability and corporate affairs officer, Nompilo Morafo, said: So yes, since 2011, our process of issuance and cancellations of ADRs has always been held by the Bank of New York Mellon. They hold about 0.3 of MTN Groups total issued capital at this point of the ADRs.
Morafo said Stefaniks claims about the Zobay case were incorrect and not factual, pointing out that the anti-terrorism case of MTN at this point is at the stage where parties have exchanged evidence and the factual allegations have not been tested in court.
