Chris Spillane and Renee Bonorchis
TELCOM’S chief executive Sipho Maseko appeared in a Johannesburg court on Friday after being summoned to respond to allegations of traffic regulation fraud.
Police started investigating Maseko last July after he was accused of cloning car licence plates to avoid traffic fines. Mabena Motshoane, who had bought a Range Rover previously owned by Maseko, received about R30 000 in fines linked to a newer model vehicle with the same licence plate, he said at the time.
Maseko “appeared at the Wynberg Magistrate Court today for fraud”, South African Police Service spokesman Lieutenant Colonel Lungelo Dlamini said, without giving further details of the case.
“The three charges all relate to allegations regarding a previous motor-vehicle licence plate and include one of fraud and two related to the Road Traffic Act,” Telkom spokeswoman Jacqui O’Sullivan said. Maseko did not return a phone call seeking comment.
Shares quadrupled
Maseko, a qualified lawyer, has been the chief executive of Telkom since April 2013. He was the previous chief operating officer of Vodacom and chief executive of BP in southern Africa. Telkom is about 40 percent owned by the government.
Telkom shares have quadrupled under Maseko’s leadership as the company cut costs and boosted revenue after a decline in landline use hurt the business. The operator returned to profit for the first time in three years in fiscal 2014, and said last month it would pay its first dividend since 2011.
Maseko approached the court in May and received a summons to appear in court on June 5, Telkom said.
That was delayed until Friday and the matter had been postponed until September 4, the firm said.
“Mr Maseko vehemently denies any intention to defraud any person or organisation and the necessary representations will be made to progress this matter,” Telkom said. “Mr Maseko would like to address these claims and he now has the opportunity to do so, through the legal process.”
The stock fell 4.72 percent to R59.50, valuing the company at R31.35 billion. – Bloomberg