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Johannesburg - Telkom SA Soc [JSE:TKG] said on Monday it loaned its suspended chief financial officer R6m to buy its shares, which could be illegal.
"Telkom's management has recognised that the loan made to such executive may not have been in compliance with the provisions of the companies act," the company said in a statement.
The fixed-line operator suspended Jacques Schindehütte last month pending its disciplinary process over allegations against him. It has said that the suspension was related to personal misconduct, not insider trading.
Telkom, which also reported a sharp rise in first-half earnings on Monday, said that its loan to Schindehütte was interest-free.
Schindehütte bought Telkom shares worth nearly R6m on September 30, regulatory filings show.
The company did not say when it expected its disciplinary process against Schindehütte to be completed.
Telkom on Monday reported diluted headline earnings of 649.8 cents a share for the six months to September 30, from a restated 24.9c a year earlier.
The higher earnings were largely because of an accounting gain related to its liability for health insurance for retired employees, it said.
Excluding that gain, headline earnings per share increased to 224.2c, it said. It did not give an equivalent number for diluted headline earnings per share.
"Telkom's management has recognised that the loan made to such executive may not have been in compliance with the provisions of the companies act," the company said in a statement.
The fixed-line operator suspended Jacques Schindehütte last month pending its disciplinary process over allegations against him. It has said that the suspension was related to personal misconduct, not insider trading.
Telkom, which also reported a sharp rise in first-half earnings on Monday, said that its loan to Schindehütte was interest-free.
Schindehütte bought Telkom shares worth nearly R6m on September 30, regulatory filings show.
The company did not say when it expected its disciplinary process against Schindehütte to be completed.
Telkom on Monday reported diluted headline earnings of 649.8 cents a share for the six months to September 30, from a restated 24.9c a year earlier.
The higher earnings were largely because of an accounting gain related to its liability for health insurance for retired employees, it said.
Excluding that gain, headline earnings per share increased to 224.2c, it said. It did not give an equivalent number for diluted headline earnings per share.
