A US court ruled it has no jurisdiction to hear a terrorism case brought against MTN Group in that country, paving the way for the telco to resolve the Afghanistan terrorism lawsuit.
Africa’s biggest telco has been accused of violating US anti-terrorism laws through alleged payments of protection money to militant Islamist groups in Afghanistan.
MTN is being accused of declining to use armed guards to protect its towers, opting to purchase cheaper “security” by buying it from the Taliban.
The alleged payments helped finance a Taliban-led insurgency that led to the attacks on Americans in Afghanistan between 2009 and 2017, the accusations say.
MTN has denied the allegations and yesterday it announced to shareholders that it had crossed the first hurdle of the lawsuit unscathed, after the court recommended the case be dismissed.
“MTN is pleased to report that on Friday evening, 30 July 2021, the magistrate judge to whom the case had been referred made a recommendation to the district judge presiding over the case to grant the motion to dismiss for all defendants in the case, including as submitted by MTN defendants,” said the company.
“The magistrate judge further concluded that the court did not have jurisdiction over MTN defendants. Under the US court’s procedures, the plaintiffs are permitted to file objections to the report with the district judge, and MTN defendants will have an opportunity to respond.”
MTN added it is in the process of studying the full report with its legal counsel; however, the mobile operator is pleased with this positive development supporting its “strong defence and arguments” with regards to its motion to dismiss.
Meanwhile, MTN advised shareholders yesterday that for the six-month period ended 30 June 2021 it expects to report a decrease in earnings per share (EPS) of between 75% and 85% (or 506c to 573c).
It said: “Considering the EPS of 674c for the corresponding six-month period ended 30 June 2020, this translates into a range of 101c to 169c for the six-month period ended 30 June 2021.
“EPS includes impairment losses totalling approximately 75c (2020: 99c) that relate mainly to MTN Yemen, largely non-cash losses from the deconsolidation of subsidiary MTN Syria of approximately 262c (2020: 0c) and a gain on the fair value uplift on consolidation of the group’s equity accounted investment in aYo of 96c (2020: 341c gain from disposal of ATC Uganda and ATC Ghana tower joint ventures).”
Additionally, MTN is expecting a decrease in headline earnings per share (HEPS) of between 5% and 15% (or 22c to 65c).
“Considering the HEPS of 430c for the corresponding six-month period ended 30 June 2020, this translates into a range of 366c to 409c for the six-month period ended 30 June 2021.”
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