Telkom's suspended CFO told to repay R6 million loan immediately
Back in mid-November, Telkom admitted it had lent its suspended chief financial officer R6 million. Telkom suspended Jacques Schindehütte the month before for undisclosed reasons. Late yesterday it emerged that Telkom demands that Mr Schindehutte immediately pays back the borrowed money. Let's take a closer look at what's going on…
Yesterday, Telkom said that “it is claiming back the R6 million loan from [its] suspended chief financial officer, reports Fin24
. Jacques Schindehutte received the “interest-free loan” so he could buy shares in Telkom.
On 24 October, Telkom announced that it had suspended
its CFO Mr Schindehutte. All that Telkom said about the suspension was it was due to a disciplinary process.
On the same day, it emerged that the JSE referred a share purchase by Mr Schindehutte to the Financial Services Board (FSB)
. The following day, Telkom said it didn’t suspend Mr Schindehutte for insider trading
Then on 18 November, Telkom revealed that it had loaned Mr Schindehutte R6 million to buy shares
Telkom gave the loan to Mr Schindehutte on an interest-free basis, notes Fin24
. According to records, he purchased “the shares on 30 September at R24.45 each”.
The terms of the loan detailed that Mr Schindehutte would only have to repay it “if he left the company,” says IOL
There is no link between the loan and Telkom’s CFO’s suspension
Speaking yesterday, the suspended CFO said that there was to relation between the loan and his suspension, adds IOL
. Mr Schindehutte says he “followed the correct procedure” for the loan’s approval. But that Telkom couldn’t “ratify the loan as they had indicated to the market” and he now must repay it.
The reason for Mr Schindehutte’s suspension remains a mystery. But he is still an employee of Telkom since his suspension last October.
So time will tell when Mr Schindehutte repays his loan. And what Telkom’s disciplinary process determines about the suspension of their CFO.