Telkom this morning defended former CFO Jacques Schindeh"utte's early retirement, saying it was in line with the company's policy, and freed the team up to focus on commercial aspects.
Schindeh"utte, who joined the group as CFO in August 2011, was suspended on 24 October, a move that followed "the findings of an investigation by an independent law firm, commissioned by the board, following receipt of certain allegations levelled against Mr Schindeh"utte by an anonymous whistle-blower".
His "early retirement" was quietly announced just before close of business on 8 August, and came in the midst of a confidential disciplinary process.
Telkom will not clarify what charges its former CFO faced, and has not disclosed what benefits he will receive. It also has yet to clarify who will be appointed to that post now, although Deon Fredericks has been acting CFO since 24 October.
Telkom chairman Jabu Mabuza, addressing the group's annual general meeting this morning, noted the company will not provide further information, because it is honouring the non-disclosure agreement.
Sensible decision
In the end, Schindeh"utte, who celebrates his birthday in April, decided to retire as he had reached 55 years of age, explained Mabuza. He said staff can take early retirement at 55 without the company's consent, a situation that is provided for in Telkom's policy.
Schindeh"utte's early retirement was carefully considered by the board, and accepted, noted Mabuza. He said Telkom's main job is to focus on the business of the day, and sustainable growth for the future, and Schindeh"utte's retirement frees CEO Sipho Maseko and his team to focus on commercial aspects. "It was the most sensible thing to do."
Mabuza added Schindeh"utte's departure has "nothing to do with share trading, nothing to do with anything else. That is exactly what happened." Telkom has also not explained why it initially said a R6 million loan granted to him was ratified, and then contradicted itself by saying Schindeh"utte personally oversaw that loan to himself.
Schindeh"utte used the money to buy 243 700 shares on 30 September, just days before the company issued a trading statement indicating earnings would be at least 20% higher when it reported interim results. Telkom said, on 25 October, the disciplinary was not linked to the share trade, or allegations of insider trading - which was an immediate assumption made by many.
"When a board, any board worth being called a board," receives an independent forensic audit report implicating a director, it must act, says Mabuza. He says due process was followed and, although lengthy, this was also independent.
"What are we being accused of?" asked Mabuza, saying the company honoured due process, and its retirement policy. He added the group intends to bulk up its board, as it has space for complementary skills, and this process should be done by the next annual general meeting.
Share