15 January 2014 Telkom CFO's Disciplinary Hearing Starts

Telkom confirms to its stakeholders that the confidential disciplinary hearing involving Telkom's CFO, Mr Jacques Schindehütte, on a matter of personal misconduct is scheduled to commence in Johannesburg tomorrow, Thursday 16 January 2014.

This disciplinary hearing is the outcome of a process that began last year, when Telkom received certain allegations regarding the conduct of Mr Schindehütte. Following the receipt of the allegations, the Board of Directors tasked an independent legal firm to investigate the allegations.

A report was completed and presented to the Board by the law firm. The Board considered the report, applied its mind and took professional advice. In October last year the Board determined that the fairest way forward was to provide Mr Schindehütte the opportunity to defend himself in a disciplinary hearing.

In the interest of ensuring a fair process, all parties to the confidential disciplinary hearing are constrained from discussing the matter outside the hearing itself or commenting on its content to third parties. Telkom respects this process and is therefore not in a position to comment on any details related to the matter until the outcome is decided.

Telkom is committed to following the correct principles and processes to ensure that the hearing is conducted in a fair and dignified manner which meets all legal and governance requirements. The outcome of the hearing will also follow the prescribed Board processes, before being communicated publicly. In the interests of transparency Telkom is committed to communicating the outcome once all required legal and governance processes have been followed.

For further enquiries, please contact:

PYNEE CHETTY

Senior Specialist: Media Relations
Tel.: (012) 311-5247
Cell: 081 389 7874
Email: chettpr2@telkom.co.za

or

LEIGH-ANN FRANCIS

Specialist: Media Relations
Tel.: (012) 311-7114
Cell: 081 391 4780
Email: francilm@telkom.co.za

Telkom is a leading communications services provider in South Africa and on the African continent. We had consolidated operating revenue of R16.2 billion and profit after tax of R773 million for the year ended 31 March 2013, excluding the net curtailment gain. Total assets amounted to R39.6 billion and equity attributable to the owners of Telkom to R21.5 billion as of 30 September 2013. The group generated free cash flow of R33 million for the period ended 30 September 2013.

As of 30 September 2013, we had approximately 3.7 million telephone access lines in service and 183,880 ports connected via MSAN access. We offer business, residential and payphone customers a wide range of services and products, including:

  • fixed-line retail voice services using PSTN (Public Switched Telephone Network) lines, including ISDN (Integrated Services Digital Network) lines, and the sale of subscription based value-added voice services and calling plans;
  • fixed-line customer premises equipment rental and sales services both voice and data needs and these include PABX, Computers, Routers, Modems, Telephone handsets and other ancillary equipment;
  • interconnection services, including terminating and transiting traffic from South African mobile operators, as well as from international operators and transiting traffic from mobile to international destinations;
  • fixed-line data services, including domestic and international data transmission services, such as point-to-point leased lines, ADSL (Asymmetrical Digital Subscriber Line) services, packet-based services, managed data networking services and internet access and related information technology services;
  • Data Centre Operations includes e-commerce, application service provider, hosting, data storage, e-mail and security services;
  • W-CDMA (Wideband Code Division Multiple Access), a 3G next generation network, including fixed voice services, data services and nomadic voice services;
  • mobile communication services, including voice services, data services and handset sales through our mobile brand called Telkom Mobile; and
  • other services including directory services, through Trudon (Pty) Ltd, wireless data services, through Swiftnet (Pty) Ltd and internet services outside South Africa, through the iWayAfrica Group.

Convergence is one of our key strategic initiatives in building a sustainable future for Telkom. We will lead the provision of converged services in South Africa in support of our mission statement: Seamlessly connecting people to a better life.

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