MTN Group faces Anti-Terrorism Act lawsuit

A US District Court has given the go-ahead for an Anti-Terrorism Act lawsuit against Africa's telecoms giant, MTN Group, just a day after President Cyril Ramaphosa announced MTN chairman Mcebisi Jonas as the country's Special Envoy to the US in an effort to mend relations between the two countries.

- EDWARD WEST

LegalBrief Africa said yesterday that the US District Court for the Eastern District of New York has allowed a "high-stakes Anti-Terrorism Act lawsuit" against MTN Group, to advance to the discovery stage." It stated: "MTN Group has wasted no time in submitting an appeal, setting the stage for a precedent-setting legal battle that could rattle court and boardrooms alike for years to come." The court action comes as Jonas' appointment has been slated by some commentators because he labelled US President Donald Trump a "racist, homophobe" and "rightwinger" at an Ahmed Kathrada Annual Lecture in 2020. He is also chairman of a group that has business ties in Iran, a country that faces sanctions from multiple agencies and countries, particularly the US.

MTN also faces allegations of human rights abuses due to internet shutdowns in conflict countries.

In the federal lawsuit, more than 50 Americans claimed MTN and other technology companies did business with the Islamic Revolutionary Guard Corps (IRGC), even though they knew the transactions would help finance, arm, and support the Iranian group's terror campaign in neighbouring Iraq.

As a result, thousands of Americans were injured or killed between 2011 and 2016, LegalBrief Africa said, citing the lawsuit.