The Iran ties of MTN, the telecommunications firm chaired by South Africa’s new envoy to the U.S., Mcebisi Jonas, could have damaging reputational effects on Meta and other firms as MTN comes under scrutiny.
Jonas, who was recently appointed in place of the expelled Ambassador Ebrahim Rasool, is a former finance minister who is seen in South Africa as one of the few members of the ruling party to stand up to corruption.
However, as Breitbart News and others have reported, Jonas also chairs MTN, which has Iran ties that have been implicated in a recent lawsuit in the Eastern District of New York, alleging support for Iranian terror.
The complaint also names other controversial companies, including ZTE and Huawei, both of which have come under criticism for their ties to China and potential use in surveillance against the U.S. and its allies.
A federal judge ruled Tuesday that a group of American plaintiffs, including Gold Star family members whose relatives lost their lives in Iraq while serving in the U.S. armed forces, will be allowed to proceed to discovery regarding MTN’s operations in Iraq, which allegedly were linked to the Iranian Revolutionary Guard Corps (IRGC).
As MTN Group’s links to Iran come under a legal and media spotlight, there are risks for U.S. firms.
For example, MTN announced a new partnership on Tuesday with Meta the parent company of Facebook, “to enhance the quality of voice and video calls on real-time communication platforms, including WhatsApp.”
Commentator Michael Walsh, who writes frequently about African affairs, said Tuesday:
In the coming days, Meta will have to answer questions about why it has chosen to enter into a strategic partnership with a South African company that maintains significant links to a strategic adversary of the United States. It is not like Meta was unaware of the maximum pressure campaign being waged against Iran by the U.S. Government. No matter how it responds, this development poses a significant risk to Meta shareholders. It also raises serious questions about the due diligence of other U.S. companies operating in South Africa (e.g., Microsoft).
A Meta spokesperson told Breitbart News on Wednesday that the partnership with MTN extended only to African markets, and that Meta did not work with MTN’s Iranian subsidiary.
In a statement, Meta said: “Like many other American companies, we work with MTN Group, the largest mobile provider in Africa. Meta does not have, and has never had, any commercial relationship with MTN’s Iran subsidiary and our work with MTN itself explicitly excludes Iran.”
The Meta spokesperson also noted that Meta is not alone among U.S. firms in working with the MTN Group in telecommunications enterprises. Others include Microsoft, Mastercard, Accenture, and Genesys.
Notably, the Iranian regime bans Facebook and Instagram, among other American social media companies.
Nonetheless, Walsh noted, American firms face risks by conducting joint ventures with the MTN Group. He also observed that the choice of Jonas by South African President Cyril Ramaphosa could complicate ties with the U.S., rather than mending them.
Joel B. Pollak is Senior Editor-at-Large at Breitbart News and the host of Breitbart News Sunday on Sirius XM Patriot on Sunday evenings from 7 p.m. to 10 p.m. ET (4 p.m. to 7 p.m. PT). He is the author of The Agenda: What Trump Should Do in His First 100 Days, available for pre-order on Amazon. He is also the author of The Trumpian Virtues: The Lessons and Legacy of Donald Trump’s Presidency, now available on Audible. He is a winner of the 2018 Robert Novak Journalism Alumni Fellowship. Follow him on Twitter at @joelpollak.
