The real reason behind Telkom CFO suspension

The Sunday Times reported that Telkom CFO Jacques Schindehutte was suspended because he allegedly hired a consultant he knew without going through the proper process.

Telkom announced on 24 October 2013 that Schindehutte was suspended pending a disciplinary process.

The company did not provide a reason for his suspension, which sparked many rumours that it may be related to a R6 million Telkom share trade three weeks ago.

However, Telkom dismissed this rumour, saying that “there is no connection whatsoever between the suspension of Schindehutte and the Insider Trading enquiry instituted by the JSE in relation to Mr Schindehutte’s trade in Telkom shares on 30 September 2013”.

“The suspension relates to allegations of personal misconduct levelled against Mr Schindehutte and which came to the Board’s attention through a whistleblower,” Telkom said.

Other speculation suggested that the suspension may be related to a staff deal around a post-retirement medical aid scheme involving Liberty Life, or his excessive use of consultants.

Business Times reported on Sunday (27 October) that Schindehutte’s charge sheet listed five matters which mainly related to the Telkom CFO hiring consultants whom he knew before.

The newspaper reported that Schindehutte received approval from former CEO Pinky Moholi’s office for the appointments, and that the contracts were sent through Telkom’s legal department.

The full report is available on the Business Times from 27 October 2013 (online here)

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