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Suspended Telkom CFO must repay loan

Johannesburg - Suspended Telkom chief financial officer Jacques Schindehutte must re-pay a R6m loan from the company, Business Day reported on Wednesday.

Schindehutte's disciplinary hearing over allegations of personal misconduct was expected to start on Wednesday.

The newspaper reported that Telkom had issued a statement on Tuesday 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 over 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.

 

 

 

ref - http://www.fin24.com/Companies/ICT/Suspended-Telkom-CFO-must-repay-loan-...