Telkom CEO charged with falsifying license plate

Sipho Maseko, the chief executive officer of Telkom SA SOC Ltd., has been charged with unlawfully driving a car with falsified license plates and deceiving law enforcement agencies.

Maseko, 46, displayed a different car license plate to the one he was issued from February 2013 to July 2014 and incurred traffic fines of R18,000 in someone else’s name, according to a document filed by prosecutors at Wynberg Magistrate’s court in Johannesburg.

Police started investigating Maseko last July after he was accused of cloning car license plates to avoid traffic fines. Mabena Motshoane, who had bought a black Range Rover previously owned by Maseko, received penalties linked to a newer model vehicle with the same license plate, he said at the time.

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“The accused is guilty of the crime of fraud,” according to the document. “The displaying of the wrong number plate was deceiving to the law enforcement agencies and prejudicial to the person who bought his old Range Rover.”

Maseko, who did not immediately reply to an e-mail seeking comment, is a qualified lawyer who has been CEO of Telkom since April 2013. 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.

Telkom fell as much as 3.2% and traded down 1.2% to 59 rand as of 1:13 p.m. in Johannesburg. The phone company has fallen 16% this year and is valued at 31.1 billion rand.

The legal process will continue, Telkom said in a statement Friday. Maseko approached the court in May and received a summons to appear in court on June 5, Telkom said in another statement last week, and he vehemently denied any intention to defraud any person or organization. The matter has been postponed until Sept. 4.

The National Prosecuting Authority of South Africa said that where charges are laid, its response would be through the courts rather than making comment elsewhere.

- Bloomberg