South Africa’s national telecommunications company was informed by the Companies and Intellectual Property Commission (CIPC) that it had contravened Sections 44 and 45 of the Companies Act of 2008 because the payment of the loan was authorised prematurely and before the Telkom board was able to pass it.
The compliance notice which was issued by the CIPC required Telkom to regularly update the commission on the progress made in recovering the loan amount from Schindehütte.
“Telkom has confirmed to the CIPC that the full amount of the loan has already been recovered from Mr. Schindehütte,” the company said.
Schindehütte, who was previously the Absa CFO and joined Telkom in July 2011, was suspended by Telkom’s board of directors in October 2013 pending a disciplinary process. He was accused of taking out a loan to fund the buying of Telkom shares.
In January 2014 the telecommunications company announced that Schindehütte had to pay back the loan. A confidential disciplinary hearing involving the CFO began on January 16, 2014.