Suspended Telkom CFO must repay R6m loan

2014-01-15 11:51

Suspended Telkom chief financial officer Jacques Schindehutte must repay a R6 million loan from the company.

Financial daily Business Day reported today that Schindehutte’s disciplinary hearing regarding allegations of personal misconduct was expected to start today.

The newspaper reported that Telkom had issued a statement yesterday regarding the interest-free loan.

According to Telkom, the loan was approved in a manner “inconsistent with the provisions of the Companies Act, making the transaction null and void”.

It said the Telkom board did not ratify the loan and Schindehutte himself was involved in processing it.

In his position as chief financial officer, Schindehutte had “oversight responsibility for compliance and corporate governance, including for the regulatory and/or administrative processes relating to the provision of loans to directors at Telkom”.

According to the report, Schindehutte bought 243 700 Telkom shares at more than R24 each, meaning that he could sell these to repay the loan and possibly retain a profit.

He told Bloomberg News that he would repay the loan without delay.

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