Suspended Telkom CFO Says Hearing May Conclude by Year-EndChris Spillane
Jacques Schindehutte, the suspended finance chief at South Africa’s Telkom SA SOC Ltd. amid a probe into alleged misconduct, said he expects the disciplinary process to conclude by the end of the year.
“It is a comprehensive process, but I would like to think before the end of 2014” and not before the start of October, Schindehutte said by phone today, when asked about the hearing.
The CFO was suspended in October 2013 following the outcome of a board-commissioned investigation into unspecified allegations made against him. A disciplinary hearing began Jan. 16. In a statement to Bloomberg News, Telkom said it’s not in a position to comment on the confidential process, nor would it predict how long it will take.
Telkom, which is 40 percent owned by South Africa’s government, will report full-year earnings per share excluding one-time items of as much as 8.75 rand on June 13, the company said last month. That compares with a restated 0.86 rand for the previous year. Telkom shares have gained 50 percent in 2014, making them the third-best performer on the FTSE/JSE Africa All Share Index.
Deon Fredericks was appointed as acting Telkom CFO on October 24 and will fill the position until Schindehutte’s disciplinary process is concluded, according to a stock exchange announcement by Telkom. Neither the company nor the CFO have specified the nature of the alleged misconduct.
The Johannesburg Stock Exchange “is engaging with the company on this matter and the company has undertaken to advise the JSE of the outcome of the process,” Andre Visser, general manager of issuer regulation at the JSE, said in an e-mailed response to questions.