Telkom clarifies Bloomberg story
Telkom notes that the Bloomberg news agency has today published an article
regarding the R6m loan that Telkom had provided to its Chief Financial
Officer, Mr Jacques Schindehütte, last year.
The Bloomberg report indicates that Telkom has asked Mr Schindehütte to
repay the loan.
Bloomberg reporter Mr 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
The failure by Bloomberg to provide Telkom 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'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."