An instruction by a state body for Telkom CEO, Sipho Maseko, to attend a corporate governance and a director duties course “is effectively a public reprimand” according to a Bloomberg report.<\/p>\n
Maseko faces referral to South Africa\u2019s national prosecutor or a fine of up to one million
\nrand, if he fails to attend the course, Bloomberg said, citing the Companies and Intellectual Property Commission (CIPC).<\/p>\n
Telkom said in February that it received a compliance notice from the CIPC relating to its\u00a0interest free loan granted to suspended chief financial officer, Jacques Schindeh\u00fctte<\/a>.<\/p>\n Schindehutte was granted a loan of $538,000 by Telkom in September 2013, to buy shares in the group.<\/p>\n He has since returned the money, after the company admitted that the loan \u201cwas granted in a manner that was inconsistent with the provisions of the Companies Act, making the transaction null and void\u201d.<\/p>\n In a statement on SENS on 24 February, Telkom advised that the CIPC notified the group that it believes that the Telkom contravened Sections 44 and 45 of the Companies Act No. 71 of 2008 \u201cas the payment of the Loan was authorised prematurely and prior to the board of directors of Telkom passing the necessary precursory financial assistance resolutions\u201d.<\/p>\n The compliance notice required Maseko “to attend a corporate governance and a director duties course within 90 business days from the date of the compliance notice (10 February)”.<\/p>\n Maseko could face an administrative fine or referral to the National Prosecuting Authority \u201cShould the CEO not comply with the Compliance Notice, the Act allows for the CIPC to either apply to a court for the imposition of an administrative fine or refer the matter to the National Prosecuting Authority for prosecution,\u201d Ludin said.<\/p>\n \u201cThe CIPC\u2019s instruction regarding Maseko\u2019s requirement to attend a course is effectively a public reprimand,\u201d said Kate Turner-Smith, a Cape Town-based analyst for BPI Capital Africa.<\/p>\n The Sunday Times reported in March that Maseko<\/a> hit back at the CIPC which questioned his ability to head a listed company.<\/p>\n Maseko said: \u201cIt was [probably] some small-time bureaucrat trying to shake his weight around. It\u2019s a very bad compliance notice. It was badly arrived at. It\u2019s procedurally unsound.\u201d<\/p>\n
\nfor criminal prosecution if he fails to attend the course, CIPC head Astrid Ludin told Bloomberg.<\/p>\nMore on Telkom<\/h3>\n