South Africa’s Companies and Intellectual Property Commission (CIPC) on Monday said South Africa’s fixed line operator, Telkom SA (Telkom), had violated the companies act by lending its suspended financial director, Jacques Schindehutte, R6 million ($548 000) loan late last year.

CIPC said the loan was paid out hastily to Schindehutte and before the Telkom board had voted for “precursory financial assistance resolutions.”

The regulatory body called on Telkom to keep it informed about the developments in recovering the loan from Schindehutte.

But Telkom on Monday confirmed to the CIPC that the full amount of the advance had already been recouped from Schindehütte.

Late last year, Telkom, confessed to granting Schindehutte a R6 million ($548,000) loan, admitting this could have been in contravention of the companies act.

Telkom said the loan’s interest was calculated at 0 percent a year to help Schindehutte buy shares in the firm.

The telecom company suspended Schindehutte, who claimed he had been offered a chance to resign before being suspended but thought doing so would not have been in line with his value system. At the time, he told TechCentral he respected the decision of Telkom’s board to institute disciplinary hearing against him.

Telkom did not give reasons for Schindehutte’s suspension at the time.

Before joining Telkom, Schindehutte had been CFO at Absa, South Africa’s biggest retail bank, for many years. He resigned from the lender shortly after the current CEO, Maria Ramos, was appointed to head the lender.

It is not clear whether the report by CIPC will lead to the lifting of his suspension from Telkom as he is not implicated in any wrong doing.