Telkom CFO Told to Repay $555,000 Loan Awarded to Buy Stock
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Telkom SA SOC Ltd. said it asked suspended Chief Financial Officer Jacques Schindehutte to repay a 6 million rand ($555,000) loan used to buy shares because the transaction breached the terms of the Companies Act.
Telkom, Africa’s biggest fixed-line phone operator, lent Schindehutte the cash in late September so he could buy stock, Chief Executive Officer Sipho Maseko said on Nov. 18. Schindehutte would only be obliged to repay the zero-interest loan if he left the company, Pretoria-based Telkom said in a statement the same day. The CFO was suspended in October following the outcome of an investigation into unspecified allegations of misconduct, yet remains a Telkom employee.