Telkom recovery distracted by CFO suspension, says CEO
Telkom’s disciplinary hearing involving suspended CFO, Jacques Schindehütte, has been a major distraction for the company, said CEO Sipho Maseko.
Maseko is leading a recovery for the company as it tries to correct years of blunders and restore value to shareholders.
Schindehütte is set to pay back a R5.96 million loan awarded to him by the company in September 2013. Telkom admitted in November that the loan made to such an executive “may not have been in compliance with the provisions of the companies act”.
The disciplinary hearing commenced on Thursday (16 January), as a result of a process that began in October, when Telkom said it received “certain allegations” regarding the conduct of Schindehütte.
The group said that his suspension “relates to allegations of personal misconduct levelled against Mr. Schindehütte and which came to the Board’s attention through a whistleblower”.
Following much speculation, Maseko clarified that Schindehütte’s suspension had nothing to do with fraud, inappropriate sexual conduct, or his management style.
Further speculation that it was to do with the hiring of an investor relations manager outside of due process has been tempered with the fact that former CEO Pinky Moholi authorised that appointment.
The Sunday Times reports that there are fears Schindehütte was suspended for political reasons.
“[The suspension] has been an absolute pity, it has weighed heavily on me,” said Maseko. “Telkom may have failed to treat [Schindehütte] with the dignity and respect he deserved.”
Telkom previously warned that it is not in a position to comment on any details related to Schindehütte’s hearing until the outcome is decided.
“Telkom is committed to following the correct principles and processes to ensure that the hearing is conducted in a fair and dignified manner which meets all legal and governance requirements. The outcome of the hearing will also follow the prescribed Board processes, before being communicated publicly,” the company said.
Schindehütte’s disciplinary hearing comes at a time when Telkom CEO Sipho Maseko is planning to sack as many as 1,000 managers and reduce its workforce by a third over the next five years, according to a report by Bloomberg.
Source: Sunday Times 19 January 2014 edition
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