US Investigates MTN’s Former Operations In Afghanistan
South Africa–based MTN Group said it is under investigation by the US Department of Justice over its past operations in Afghanistan and those of its former subsidiary.
MTN CEO Ralph Mupita told reporters that the company’s US attorneys had confirmed a Justice Department grand jury investigation had been launched. The probe also covers the activities of Iran’s mobile operator Irancell, in which MTN holds a stake.
Mupita said the company is cooperating fully and voluntarily responding to requests for information but declined to provide further details.
MTN is already facing lawsuits in the United States brought by American soldiers and civilians who were wounded or killed in Iraq and Afghanistan between 2005 and 2010.
News of the latest probe came as MTN trimmed its medium-term service revenue growth forecast in South Africa, prompting shares to fall 9 percent on Monday.
MTN officially exited Afghanistan in April, selling its stake to another firm, which now operates under the brand name ATOMA.
