An investigation has dismissed allegations that the South African-based operator group MTN bribed officials and engaged in corruption to secure Iran’s second mobile licence in 2005.

The allegations were made by Turkcell, which lost out to MTN for the Iranian operating licence, and filed a lawsuit in the US demanding $4.2 billion in damages last year. MTN owns 49 percent of Irancell with the rest of the operator owned by the Iranian government.

Turkcell accused MTN of bribing South Africa’s ambassador to Tehran, Yusuf Saloojee, and Iranian official Javid Ghorbanoghli – and using its influence to get South Africa to abstain from a vote on Iran at the International Atomic Energy Agency (IAEA).

Turkcell’s allegations were based on testimony by Christian Kilowan, who was employed by MTN between August 2004 and November 2007.

The committee appointed by MTN to investigate the claims dismissed Turkcell’s allegations as “a fabric of lies, distortions and inventions”, according to a circular on the MTN website.

Chaired by retired judge Lord Hoffman, the committee found there was no conspiracy between MTN and Iranian officials to remove Turkcell from the successful consortium and that the company did not bribe the officials.

The committee also found nothing to support Turkcell’s claims that MTN influenced the IAEA vote or promised to get the South African government to supply Iran with defence equipment or in exchange for the telecoms licence.

MTN said it “will continue to vigorously defend the US Proceedings” initiated by Turkcell.