Business17.01.2014

Telkom: did they or didn’t they?

Telkom recently announced that the R6 million loan to Telkom CFO, Jacques Schindehutte, was granted in a manner that was inconsistent with the provisions of the Companies Act, making the transaction null and void. Telkom ordered Schindehutte to repay the loan.

In a press statement regarding the matter, Telkom said that its board “cannot and did not ratify the granting of the loan”.

However, in November 2013 Telkom CFO said in two separate interviews that the loan was indeed ratified by the board.

Maseko told Bruce Whitfield on Talk Radio 702 that “we advanced the loan and then ratified it by a board resolution.”

In a separate interview, this time with Business Report, Maseko said that “we issued the loan and then ratified the decision after we had issued the loan when actually the board should have taken a decision as well on top of the shareholder”.

This means that Maseko’s claim that the Telkom board “advanced the loan and then ratified it” is in conflict with the company’s statement that Telkom’s board did not ratify the granting of the loan.

Telkom responds

Telkom said that it cannot comment on this issue because of the ongoing hearings into Schindehutte’s conduct.

Telkom statement

Please note that a confidential disciplinary hearing involving Telkom’s CFO, Mr Jacques Schindehütte, began in Johannesburg on Thursday 16 January and is currently under way.

To ensure a fair process, all parties to the confidential disciplinary hearing are constrained from discussing the matter outside the hearing or commenting on its content to third parties.

In addition to complying with this measure, Telkom will not be responding to media queries involving Mr Schindehütte for the duration of the hearing to ensure that such comments do not have an impact on the process, and are not perceived as an attempt to influence the disciplinary process in any way, whether such queries are related or unrelated to the disciplinary process.

Telkom respects the conditions of the disciplinary process, and is committed to uphold all requirements of corporate governance to allow the hearing to be conducted in a fair manner that respects the dignity of all individuals involved.”