Telkom gave chief financial officer a R6m loan

2013-11-18 11:13

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Telkom gave its chief financial officer, Jacques Schindehutte, a R6 million, interest-free loan to buy shares in the company while he was being probed for misconduct.

“The loan was given to him at the end of September,” CEO Sipho Maseko said in a phone interview today. “If we had denied Jacques the loan on September 30, based on an investigation that was not concluded, we would have unfairly prejudiced him.”

Schindehutte was suspended on October 24 following allegations of “gross misconduct”, Maseko said, declining to give further details. The probe into the executive, who is still a Telkom employee, began in August, according to spokesperson Pynee Chetty.

Telkom, which is 40% owned by the government, may have breached compliance regulations relating to the Companies Act after it gave Schindehutte the interest-free loan, the phone operator said.

The company said first-half profit excluding one-time gains rose 41% to R773 million after the rand weakened and payments to wireless operators fell.

Telkom is the best-performing telecommunications company on the JSE in 2013, gaining 60% compared with 12% for MTN Group and 3.6% for Vodacom Group.

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