Despite deep questioning, Telkom CEO Sipho Maseko will not say why the company suspended its well-reputed chief financial officer Jacques Schindeh"utte just weeks before its results presentation, writes Business Times.
This comes about 10 days after Telkom suspended Schindeh"utte in a move that shocked the market. At the time of his suspension - about two years after taking the executive position at Telkom - the company would not be drawn on what charges the CFO was facing, saying only: "The board was recently made aware of certain allegations and appointed an independent law firm to investigate them. The results of the investigation were presented to the board, and the board took professional advice about the correct way to deal with the report."
Business Times today reports that Maseko still refuses to give a reason for the move. The paper quotes Maseko as saying his "initial predisposition" when he learnt of the complaint in July that would see Schindeh"utte suspended months later, was to do nothing.
According to the paper, Maseko ruled out share trade, sexual misconduct and financial reasons for the CFO's suspension. "It has nothing to do with a share trade, it will not impact our financial performance, it will not result in us having to restate our numbers, it will not result in us having to enhance our control processes. It is broadly of a personal-conduct nature.
"There was no financial benefit to him, it was not fraud, not those sort of things."
Schindeh"utte was known to have pushed for a partnership with South Korean telecoms company KT Corporation, notes Business Times. "He and former CEO Pinki Moholi were led to believe they had the support of the government and both felt betrayed when the government pulled the plug on the deal."
The paper goes on to say that, while Moholi resigned and Schindeh"utte stayed, the CFO made no secret of the fact that he was unhappy with the government. But even this, Maseko told Business Times, was not the reason for his suspension. "Was that his sin? That he had angered Telkom's most important shareholder and now it was grabbing the first available pretext to get rid of him?"
Maseko is reported as responding: "Not at all. To think that is not fair and not right. I don't spend my time trying to make myself popular with government either. It has got absolutely nothing to do with government."
The paper goes on to cite Maseko as denying it was a matter of him and Schindeh"utte not getting along - and that he was not under pressure to suspend him.
It was recently suggested the suspension was due to Schindeh"utte hiring an investment relations consultant without following the correct procedure - a suggestion Maseko will not comment on or deny or affirm, according to Business Times. The paper says this suggests this may be closer to the truth - except that the consultant's appointment was apparently cleared with Moholi and that Maseko said there would be no need to tighten processes.
Business Times says Maseko repeatedly pointed to a "personal misconduct issue" being the reason for Schindeh"utte's suspension, without giving solid reason or indicating how long the inquiry into the charges will take. The paper quotes the CEO: "It's a personal misconduct issue. It's a matter between him and this company, not a matter for public consumption. The entire situation is most unfortunate."
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