The disciplinary hearing of suspended chief financial officer (CFO) of South Africa’s part-state owned Telkom Jacques Schindehutte, which began in January, may conclude by the end of the year, according to the latest report.
HumanIPO reported Schindehutte was suspended from his position of CFO in October last year, pending the outcome of a disciplinary investigation into allegations of personal misconduct. The confidential disciplinary process began on January 16.
Schindehutte yesterday told Bloomberg the disciplinary investigation is still ongoing, and will not conclude before October.
“It is a comprehensive process but I would like to think [it will conclude] before the end of 2014,” Schindehutte told Bloomberg.
Telkom confirmed to HumanIPO the proceedings are still ongoing, and would not specify an envisaged end-date for the investigation.
“Please note that a confidential disciplinary hearing involving Telkom’s CFO, Mr Jacques Schindehütte, is ongoing and hasn’t been concluded. Telkom is not in a position to comment on when the confidential disciplinary hearing will be concluded. There is, accordingly, no outcome at this stage,” Telkom said.
Asked for an explanation as to the extremely lengthy nature of the disciplinary, and for confirmation Schindehutte has been suspended on full pay since October pending the outcome of the process, Telkom declined to comment.
“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,” Telkom said.
“In addition to complying with this measure, Telkom will not be responding to media queries involving Mr Schindehütte for the duration of the confidential disciplinary hearing to ensure that such comments do not have an impact on the process, and are not perceived as an attempt to influence the disciplinary process in any way, whether such queries are related or unrelated to the disciplinary process.
“Telkom respects the conditions of the disciplinary process, and is committed to uphold all requirements of corporate governance to allow the confidential disciplinary hearing to be conducted in a fair manner that respects the dignity of all individuals involved.”
The nature of the personal misconduct allegations against Schindehutte has not been revealed, although Telkom has insisted there is no connection to a controversial ZAR6 million (US$550 million) loan granted to the CFO to enable him to buy shares in Telkom.
Telkom later admitted the loan was improperly granted, and demanded Schindehutte repay the full loan amount.
While the CFO did repay the loan, he spoke up against Telkom claims he had granted the loan to himself, saying he sought approvals from Telkom’s chairman, chief executive officer (CEO) Sipho Maseko and the remunerations committee.
Image courtesy of Shutterstock.
