In a statement released to the media, Telkom SA has responded to speculation over the suspension of CFO Jacques Schindehütte, announced on 24 October 2013, saying that there is no connection between the suspension and the purchase of shares by Schindehütte at the end of September 2013.
The telecommunications services provider said it noted what it called “speculation” over the suspension that the development could be related to shares purchased by Mr Schindehütte.
“Telkom confirms that there is no connection whatsoever between the suspension of Mr Schindehütte and the Insider Trading enquiry instituted by the JSE in relation to Mr Schindehütte’s trade in Telkom shares on 30 September 2013,” said the Statement.
It added that there was also no connection between the suspension and the financial performance of the Company, nor would this event have an impact.
The statement continues: “The suspension relates to allegations of personal misconduct levelled against Mr Schindehütte and which came to the Board’s attention through a whistleblower.
The Board initiated a process which included an investigation, using the services of an external law firm. As part of the process, Mr Schindehütte was given an opportunity to respond to the allegations. The findings of the external law firm as well as its recommendations were presented to the Board and these were carefully considered. The decision to suspend Mr Schindehütte was taken after obtaining legal advice.”
According to Telkom SA Mr Schindehütte has been served with a letter of suspension and the disciplinary hearing will proceed as soon as possible.
Deon Fredericks has been confirmed as acting Chief Financial Officer until the disciplinary process against Mr Schindehütte comes to a close.