Telkom chief executive Sipho Maseko faced referral to the National Prosecuting Authority (NPA) or a fine of as much as R1 million if he failed to attend a corporate governance course as ordered, the Companies and Intellectual Property Commission (CIPC) has said.
The commission told Maseko to attend a director duties course in February after a loan awarded to chief financial officer Jacques Schindehütte was judged to have breached corporate rules.
Telkom had rejected the CIPC’s authority to impose sanctions, Business Day newspaper reported on Thursday, citing Maseko.
Telkom spokesman Pynee Chetty declined to comment on the Business Day story when called on Thursday and the company did not immediately respond yesterday to calls seeking comment.
Commission head Astrid Ludin said: “Should the chief executive not comply with the compliance notice, the [relevant] act allows for the CIPC to either apply to a court for the imposition of an administrative fine or refer the matter to the NPA for prosecution.”
Sanctions such the one imposed by the commission were uncommon in South Africa, according to Kate Turner-Smith, an analyst for BPI Capital Africa, who called it “effectively a public reprimand”. - Bloomberg