NOT GOOD ENOUGH

Finweek English Edition - - INVESTMENT -

Telkom* has an­nounced that sus­pended CFO Jac­ques Schin­de­hütte has re­tired from the com­pany and that the dis­ci­plinar y pro­ceed­ings against him have been dis­con­tin­ued. This leaves me speech­less. We rally against cor­rup­tion, nepo­tism and get-out-of-jail-free cards in the Govern­ment space (and rightly so). Yet here we have as bad an ex­am­ple of sweep­ing an is­sue un­der the car­pet as we will f ind any­where. Whether Schin­de­hütte was guilty of what­ever he was al­leged to have done (and we have no idea what the claim was), it surely needs to be in­ves­ti­gated? Share­hold­ers have a right to not only know the of­fence but also whether he is guilty or not. In­stead, we get a bland Sens say­ing that the com­pany sim­ply made it go away by giv­ing him full re­tire­ment. That’s just not good enough. of peo­ple. Those who would want to sell and get out, those who have been short and want to buy back the shares in order to lock in prof­its and, lastly, those who just want to take a punt on the share. Col­laps­ing shares are a part of mar­kets and while the African Bank col­lapse ex­ceeds any­thing I have seen in over two decades, mar­kets must be al­lowed to col­lapse. To this end, the JSE im­ple­ments volatilit y auc­tions if a share falls or rises by a cer­tain band dur­ing the day in an at­tempt to smooth the col­laps­ing process. * The writer owns shares in Telkom and Coro­na­tion.

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