Jacques Schindeh"utte's suspension as Telkom's CFO, a month before it publishes its interim results, has been linked to his appointment of consultants by the Business Times.
Telkom announced the suspension of its CFO on Thursday, pending a disciplinary hearing, which led to a 3.93% drop in the value of its stock within half-an-hour. While the telco would initially not be drawn on what charges he faced, it later clarified that it had nothing to do with a share trade just before its closed period.
Schindeh"utte bought R6 million in shares the day before the company entered its second closed period this year. The purchase was eight days before it issued a trading statement indicating earnings would be at least 20% higher when it next reports interim results.
Telkom said his suspension would not affect its financial performance. In a clarification statement, it adds the suspension relates to allegations of personal misconduct against Schindeh"utte, which came to its attention via a whistleblower.
Schindeh"utte is now alleged to have hired contractors he knew previously, without following proper process, says the paper.
Business Times says the contracts involved, worth less than R5 million, were consented to by Telkom's former CEO, Nombulelo "Pinky" Moholi, and were also sent through its legal department.
Schindeh"utte has been served with a letter of suspension, which details the allegations, to which he must respond, the telco adds.
Business Times understands Schindeh"utte's charge sheet lists five issues, most of which are related to his allegedly hiring consultants who he knew prior to his tenure at Telkom, it reports.
Schindeh"utte was previously Absa Group's FD, a position he held for five years until March last year, but stayed on with the company until September. During his time at the bank, he was involved in its buyout by UK-based Barclays.
Before joining Absa, Schindeh"utte was employed by Transnet in a number of senior roles for about 14 years.
Schindeh"utte was appointed in June 2011 and took over from Deon Fredericks, who was then in the position in an acting capacity. Fredericks filled the spot in an interim role after Nelson's sudden departure the previous August and will again act as CFO now.
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