Shareholders are referred to the announcement released on the Securities Exchange News Service of the JSE Limited ("the JSE") on 24 of October 2013. This note is issued to shareholders in order to clarify certain misconceptions about and to dispel speculation on the reasons behind Mr. Schindehütte suspension.
The Board of Directors of Telkom SA SOC Limited hereby 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 trade in Telkom shares on 30 September 2013.
The Board further confirms that the suspension has no connection with and will not have an impact on the financial performance of the Company.
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 that included an investigation, using the services of an external law firm. 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.
Mr. Schindehütte was served with a letter of suspension in which Telkom clearly sets out the allegations levelled against him and to which he is required to respond.
The Board re-iterates its commitment to a fair process, conducted without favour or prejudice.
25 October 2013
The Standard Bank of South Africa Limited