Following news yesterday that Telkom has suspended its CFO Jacques Schindehutte pending a disciplinary process, the South African operator today clarified that allegations against him relate to personal misconduct.
In a statement, the telco dismissed…
Following news yesterday that Telkom has suspended its CFO Jacques Schindehutte pending a disciplinary process, the South African operator today clarified that allegations against him relate to personal misconduct.
In a statement, the telco dismissed reports suggesting that his suspension was linked to insider trading allegations.
“There is no connection whatsoever between the suspension of Mr Schindehutte and the Insider Trading enquiry instituted by the [Johannesburg Stock Exchange] in relation to Mr Schindehutte’s trade in Telkom shares on 30 September 2013,” it said.
As a result, Telkom does not expect the decision to have any impact on its financial performance.
Yesterday, the operator announced it was suspending its CFO following “the findings of an investigation commissioned by the board after certain allegations were made against Mr Schindehutte”.
The allegations came to the board’s attention through a whistleblower, it said.
The company’s CEO Sipho Maseko added: “The board of directors is determined to act responsibly and to uphold all governance requirements.
“We have a duty to investigate and to test the validity of allegations which are brought to our attention through an appropriate process. We will do this fairly, without favour or prejudice.”
A disciplinary hearing is expected to take place soon and stakeholders will be informed of the outcome shortly after, the company said.
Telkom is 39.8%-owned by the South African government, while 10.5% is held by the Public Investment Corporation and 5.4% by local investment firm Allan Gray. Approximately 42.3% of the company is in free float.
Deon Fredericks, the current deputy CFO, will fill in for Schindehutte until the disciplinary process is concluded.
