Telkom CEO Sipho Maseko has avoided a fine of up to R1 million or criminal prosecution by following a directive issued by the Companies and Intellectual Property Commission (CIPC) in February.
Telkom this morning confirmed Maseko, who became the first chief executive to receive a notice to attend a corporate governance and directors' duties course, after granting suspended CFO Jacques Schindeh"utte an interest-free loan, has complied with the CIPC order.
Maseko was given until the end of June to attend the course, failing which he could have faced a hefty administrative fine or referral to the National Prosecuting Authority (NPA), in terms of the Companies Act of 2008.
Last month, CIPC commissioner Astrid Ludin said it would be up to the commission to decide - should Maseko fail to follow the directive - whether a fine would be imposed, or the matter handed over to the NPA for criminal prosecution.
The said loan, given to Schindeh"utte in November, became a bone of contention after Telkom said it was granted in a manner inconsistent with the provisions of the Companies Act, rendering the transaction null and void.
Schindeh"utte used the loan to buy 243 700 shares in Telkom, just eight days before the company issued a trading statement indicating earnings would be at least 20% higher when it reported interim results.
Telkom's board subsequently said it could not and did not ratify the granting of the loan and the company asked Schindeh"utte to repay the money, which he did.
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