A trade in Telkom SA SOC Ltd. (TKG) stock by Chief Financial Officer Jacques Schindehutte has been referred to South Africa’s Financial Services Board’s Department of Market Abuse by the Johannesburg Stock Exchange, according to the FSB department’s head Solly Keetse.
Keetse declined to comment further because the matter was confidential. A call to Schindehutte’s mobile phone didn’t connect. Telkom spokesman Pynee Chetty declined to comment by phone and couldn’t provide further contact details for Schindehutte.
Telkom, Africa’s largest fixed-line operator, suspended Schindehutte following the outcome of an investigation into unspecified allegations made against him, the Pretoria-based company said in a statement today.
“The board of directors is determined to act responsibly and to uphold all governance requirements,” Chief Executive Officer Sipho Maseko said in a separate e-mailed statement. The company isn’t able to provide further information, he said.
Schindehutte bought 5.96 million rand ($610,000) of Telkom stock at 24.45 rand per share on Sept. 30, Telkom said Oct. 2. The shares gained 4.2 percent on Oct. 8, when the company said first-half earnings rose more than 20 percent.
Schindehutte told Techcentral.co.za he didn’t have market-sensitive information that hadn’t already been made public when he made the trade, the Johannesburg-based website reported today. The trade was approved by both Maseko and the chairman of the company, Schindehutte said.
Peter Redman, technical adviser at the JSE’s surveillance unit, wasn’t available for comment when a call was made to his office. Shaun Davies, the JSE’s director of market regulation, declined to comment in an e-mailed response to questions. John Burke, the JSE’s director of listings, declined to comment.
To contact the reporter on this story: Christopher Spillane in Johannesburg at email@example.com