Telkom CFO to pay back R6 million loan

Jacques Schindehutte, the suspended chief financial officer at Telkom, is set to pay back a R5.96 million loan awarded to him by the company in September 2013.

The company admitted in November that the loan made to such an executive “may not have been in compliance with the provisions of the companies act”.

Telkom said in a statement on Tuesday:

“The loan to Telkom’s CFO, Mr Jacques Schindehütte, was granted in a manner that was inconsistent with the provisions of the Companies Act, making the transaction null and void. The board cannot and did not ratify the granting of the loan.

“Telkom therefore has an obligation to claim the loan back in order to rectify the situation.

“By virtue of his position as CFO of Telkom, Mr Schindehütte has 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.

“He was actively involved in the processing of this loan and personally oversaw the advancement of the payment of the loan amount to himself.

“As a director of the company, and having now been advised that the loan was void, the CFO has a fiduciary duty to repay the loan to the company. We are confident that Mr Schindehütte will act in the best interests of the Company and repay the loan.”

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

The group said that his suspension “relates to allegations of personal misconduct leveled against Mr Schindehütte and which came to the Board’s attention through a whistleblower”.

It is not yet clear when the disciplinary process against Schindehutte will be completed.

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Telkom CFO to pay back R6 million loan