Cape Town - Telkom [JSE:TKG] announced on Tuesday that it is claiming back the R6m loan from suspended chief financial officer (CFO) Jacques Schindehütte.
Schindehütte acquired the interest-free loan to purchase shares in Telkom.
He bought the shares on September 30 at R24.45 each, a regulatory filing showed.
Telkom said that due protocol was not followed for the loan, resulting in the transaction being null and void.
“The loan to Schindehütte, was granted in a manner that was inconsistent with the provisions of the Companies Act, making the transaction null and void," it said in a statement.
"The board cannot and did not ratify the granting of the loan."
Telkom said in order to correct the situation; it was obligated to claim the loan back.
The parastatal said that Schindehütte had oversight responsibility for compliance and corporate governance.
It explained that this included for the regulatory and/or administrative processes relating to the provision of loans to directors at Telkom.
"He [Schindehütte] 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."
Telkom said it was confident that Schindehütte will repay the loan.
Telkom shares were trading down when the market closed on Tuesday. The share price fell -1.22% at R33.10.
Schindehütte, who joined the state firm in August 2011, was suspended in October last year, pending an investigation into allegations against him that came to the board's attention through a whistleblower, Telkom said at the time.
An external law firm is investigating the allegations against Schindehütte.
Telkom CEO Sipho Maseko vowed that the probe will be fair. "We will do this fairly, without favour or prejudice," he said in a statement at the time.
- Fin24
Schindehütte acquired the interest-free loan to purchase shares in Telkom.
He bought the shares on September 30 at R24.45 each, a regulatory filing showed.
Telkom said that due protocol was not followed for the loan, resulting in the transaction being null and void.
“The loan to Schindehütte, was granted in a manner that was inconsistent with the provisions of the Companies Act, making the transaction null and void," it said in a statement.
"The board cannot and did not ratify the granting of the loan."
Telkom said in order to correct the situation; it was obligated to claim the loan back.
The parastatal said that Schindehütte had oversight responsibility for compliance and corporate governance.
It explained that this included for the regulatory and/or administrative processes relating to the provision of loans to directors at Telkom.
"He [Schindehütte] 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."
Telkom said it was confident that Schindehütte will repay the loan.
Telkom shares were trading down when the market closed on Tuesday. The share price fell -1.22% at R33.10.
Schindehütte, who joined the state firm in August 2011, was suspended in October last year, pending an investigation into allegations against him that came to the board's attention through a whistleblower, Telkom said at the time.
An external law firm is investigating the allegations against Schindehütte.
Telkom CEO Sipho Maseko vowed that the probe will be fair. "We will do this fairly, without favour or prejudice," he said in a statement at the time.
- Fin24