JOHANNESBURG, Jan 14 (Reuters) - South Africa’s Telkom SA said on Tuesday its suspended chief financial officer would have to refund a 6 million rand ($556,800) loan as the company’s board had not agreed to the transaction.
Jacques Schindehutte, suspended in October over allegations of personal misconduct, had taken out the loan to finance the purchase of Telkom shares.
Regulatory fillings show he bought shares worth nearly 6 million rand at the end of September.
“The board cannot and did not ratify the granting of the loan,” the fixed-line provider said in a statement. “Telkom therefore has an obligation to claim the loan back in order to rectify the situation.”
Telkom said Schindehutte had been actively involved in the processing of the loan and that he personally oversaw the advancement of the payment of the loan amount to himself.
Telkom shares were down 0.9 percent at 1234GMT, lagging a 0.15 percent decline by the All-share index. ($1 = 10.7750 South African rand) (Reporting by Helen Nyambura-Mwaura; Editing by Ed Stoddard)