A R6-million interest-free loan was given to suspended CFO Jacques Schindehutte while he was being probed for misconduct, confirms Telkom.
A weak rand and lower payments to operators, as a result of lower termination rates, has seen the fixed-line operator gain.
Before being suspended, Telkom chief financial officer Jacques SchindehĂĽtte says he refused an offer that would have allowed him to resign.
Telkom's share prices have plunged after its CFO, Jacques Schindehutte, was suspended after a probe into undisclosed allegations against him.
Internet penetration in South Africa remains sluggish due to the high cost of connectivity.
The winds of change are sweeping through Telkom, or at least that's what its leadership would like us to believe. But it might already be too late.
The competition tribunal has confirmed the settlement agreement which forces Telkom will pay administrative penalties of R200-million.
The introduction of high-speed broadband is the company's best hope of turning sentiment around.
The company says its 2013 financial results reaffirm the need to act with urgency to turn the group's performance around.
The CCMA has called on Telkom and trade unions to resume wage negotiations, trade union Solidarity has said.
Telkom has settled with the Competition Commission and will pay an administrative penalty of R449-million handed down by the Competition Tribunal.
Labour pundits and civil society groups say parastatals will buckle under the weight of political interference and unclear mandates.
This week has seen the formal launch of Telkom Mobile as a mobile network serving both business and consumers, leaving 8ta as a sub-brand.
The Communication Workers' Union has promised to fight the proposed offer of voluntary packages to Telkom workers.
Telkom is to offer voluntary severance and early retirement packages to thousands of its employees, the parastatal has said.
In a puzzling move, Telkom has decided to rebrand its mobile service from 8ta to Telkom Mobile less than three years after launching the network.
Having lost 47% of its share price in the past year, Telkom's destruction of its market value in 2012 has been nothing short of a giant balls-up.
This stance is in stark contrast to the government's plans to impose a new blueprint on the parastatal.
It is not up to government to devise a strategy for Telkom and to impose this on the company, says newly appointed Telkom chairperson Jabu Mabuza.