Telkom clarifies CFO loan story
Jan 15,2014 0 Comments
Following the reports that Telkom has loaned its suspended Chief Financial Officer R6 miilion rands, the company has moved to “clarify” the report.
Telkom says it notes that the Bloomberg news agency has published an article regarding the R6m loan that Telkom had provided to its Chief Financial Officer, Mr Jacques Schindehütte, last year.
According to the company the Bloomberg report indicates that Telkom has asked Schindehütte to repay the loan.
“Bloomberg reporter Chris Spillane requested comment from Telkom on this issue today. However, Mr Spillane went ahead and published his article before Telkom had an opportunity to respond with the Company’s comment, despite being advised by Telkom that the response was being prepared for Bloomberg.” Telkom said in a statement.
Furthermore Telkom says the failure by Bloomberg to provide it with the opportunity to respond is unprofessional and it is dismaying that such conduct emanates from an agency of Bloomberg’s stature.
“Telkom recognises that, as an international news agency, Bloomberg articles are widely published by media across the world. The Company is therefore compelled to put on the record the response that Mr Spillane did not wait for before publishing his article.” Telkom says.
Telkom’s statement regarding the Company’s request for the repayment of the loan is as follows:
“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.”