Telkom says its CFO Jacques Schindeh"utte will retire from the board with immediate effect, and disciplinary proceedings against him will cease.
Schindeh"utte was suspended last October and a confidential hearing into his misconduct started in January. He has served as the company's chief financial officer since August 2011.
A confidential hearing into Schindeh"utte's personal misconduct started on 16 January. Telkom has yet to clarify what charges Schindeh"utte - who has served as the company's chief financial officer since August 2011 - is facing.
Schindeh"utte's suspension came after Telkom received a tipoff from a whistle-blower, following which it tasked a legal firm to investigate the allegations. Telkom has indicated the suspension of its CFO had nothing to do with a R6 million loan it granted him to buy shares.
The 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.
The loan, which Telkom has said was personally overseen by Schindeh"utte, has since been repaid. Schindeh"utte used it to buy 243 700 shares, just eight days before the company issued a trading statement indicating earnings would be at least 20% higher when it reported interim results.
As a result of the loan, CEO Sipho Maseko had to attend a corporate governance and directors' duties course after being directed to do so by the Companies and Intellectual Property Commission in February.
Telkom has previously noted the hearing is still ongoing, but could not say when it would end. "To ensure a fair process, all parties to the confidential disciplinary hearing are constrained from discussing the matter outside the hearing or commenting on its content to third-parties."
News of Schindeh"utte's suspension sent the market reeling, with the company's stock taking a sharp dive, dropping as much as 3.93% - or 110c - to trade at R26.90. Its share price has since recovered, partly thanks to expected increased earnings for the full year, and is now trading at above R50.
Telkom said today Schindeh"utte "will retire from the board with immediate effect. Telkom and Schindeh"utte have agreed that Mr Schindeh"utte will retire with full benefits and that the disciplinary proceedings will be discontinued".
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