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Last Updated: Tuesday, 09 February 2010 06:27:54

Nedbank’s critics wide of the mark over Morathi appointment

Published: 2009/10/19 06:31:59 AM

BERTRAND Russell, the late British philosopher, said in 1951 that one of the painful things about that era was that those who felt certainty were stupid, and those with any imagination and understanding were filled with doubt and indecision.

Nothing much has changed since then. Take the case of Raisibe Morathi, who joined the Nedbank Group last month as its new chief financial officer. Her appointment has become the stink bomb that the likes of Julius Malema, president of the ANC Youth League, are throwing at the bank. Why? They say Nedbank is racist for giving her only a portion of the job her white male predecessor had.

The truth, however, is different. When Morathi and Nedbank were discussing the job, she and the bank agreed that there were some aspects of the chief operating officer’s job she was not yet ready to take over. In line with its transformation policy, Nedbank hired her and then restructured the chief operating officer’s portfolio, handing to other executives those responsibilities Morathi was not yet ready to perform. As a result, Morathi reports to the bank’s chief operating officer, Graham Dempster, and not the CEO as was the case when Mike Brown (the new CEO) was chief operating officer. This is now being held against Nedbank by Malema and Masedi Molosiwa, the CEO of the Association of Black Securities and Investment Professionals (Absip).

“Nedbank Retail has appointed a black woman as chief financial officer, but they’ve also created a new position for a chief operating officer at the same time — so her powers were removed,” Malema reportedly told the annual conference of the Black Management Forum early this month. Molosiwa told City Press: “A key element of advancing the transformation agenda is the opening up of real opportunities with meaningful roles for black talent where there is a direct link between the title and the scope of work.”

The subtext of his statement is that Morathi has been hard done by Nedbank. He is also casting aspersions on Morathi’s integrity, effectively saying she accepted a token position.

Jimmy Manyi, the Department of Labour’s director-general, has also discussed matters with Nedbank’s top brass, and the bank was due to report back to him before month-end. .

Malema’s comments are made out of ignorance by a young man who has no understanding of workplace issues . But the views of Absip are shocking as they come from an organisation that counts among its leadership experienced financial services executives.

As Reuel Khoza, the chairman of Nedbank, and Tom Boardman, the outgoing CEO, have explained, it was Morathi herself who said she needed the time and the space to “to ramp up on Basel 2 and risk management”.

“We never imposed any responsibilities on her and when she believes she has ramped up sufficiently on Basel 2 and risk management, it will be her call to assume the remaining responsibilities,” Khoza told City Press.

Nedbank had white candidates who were more experienced than Morathi, Khoza said, but the bank chose her in line with its transformation policies.

We should be celebrating Morathi’s maturity rather than casting doubts on her integrity, as Absip and Malema are effectively doing. Morathi’s knowledge of her strengths and weaknesses says a lot about her competency. Research worldwide shows that very often those employees who are the most confident about their level of expertise and skill are those who should not be.

“Poor performers overestimate their performances the most because their incompetence deprives them of the skills needed to recognise their deficits,” write five leading US academics in a paper entitled Why the Unskilled are Unaware: Further Exploration of (Absent) Self-insight Among the Incompetent.

So Morathi’s frank assessment of her skills and expertise shows an uncommon maturity, the absence of which has caused some of the worst management disasters, in the private and public sectors. Morathi deserves praise for frankness, and Nedbank should be given credit for giving her the opportunity to grow into the job.

To drag Morathi’s name in the mud in defence of a boor such as Leonard Chuene, as Malema is doing, is a gross insult to a woman who is capable of rising to greater heights. The best help we can give her is to leave her alone.

Sikhakhane is editor-in-chief of Destiny Man and a freelance writer.

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By: ZENETH On: Oct 19 2009 2:32PM
A Chief Financial Officer reports to the CEO or the DG, finish and klaar. Anything else should be given a different apppropriate title. Literally speaking, Morathi is a glorified high level intern.
By: Twalam On: Oct 19 2009 2:45PM
Malema and everybody who have raised their concernes have not directed these concerns towards Morathi but on Nedbank implementation of EE principle. I've personally accepted this mishap as history and hope it never images again.
By: hilly1963 On: Oct 19 2009 3:16PM
I would like to kick banking arse as much as the next guy. But this article is correct. That talent management does not happen frequently, mainly has to do with the uniqueness of the whole south african experience. The financial world works on a mixture of statistics, facts and historical trust. The statistics and facts are no problem to hand over from one 'qualified' person to the next. But now you have to suck historical trust out of thin air? The finance world is a club, you have to know how it thinks and speaks in order to function effectively (I am talking about effective, not effiecient). It is not without reason that bankers tend to look and talk the same, this is to make it easier to make decisions, of course there is risk as well, you will always get some person that can look and speak the right things and fleece the institution at the same time. And why do you think they call it an institution?
By: Knight in Shining Armour On: Oct 19 2009 4:56PM
She should have been given the job as a CFO designate with clear time frames of when she'll take over officially as CFO. I have seen this before but in many cases the promise is just never kept until you are frustrated out.Just imagine the respect that she must have lost amongst her subordinates & fellow team members,it will be very difficault for her to regain it.She will always be regarded as "still learning" by her peers & as a token amongst her "more experienced subordinates". She should takes this in her stride and learn as much she can before moving on.
By: asiwassaying On: Oct 19 2009 8:58AM
JB, your logic is well reasoned, but applicable in a world where the corporate playing field is level. What you are inferring is that Morathi's appointment is procedural in so far as grooming talented individuals for bigger things; agree. However if Nedbank were in the US, UK or elsewhere, ask yourself if they would have had to restructure to accommodate a new CFO who still needs to brush up on anything; No. This is the first talent management principle of its kind I have come across in my 16 corporate and consulting years and one that upsets the balance and stability of an organisation as illogical job portfolios are created to make the CFO's job easier. As an executive decision, assuming it is not blatant discriminatory as critics have inferred, it is ill thought-out and quite frankly makes a mockery of a critical portfolio for a financial institution where risk management is probably the 'heartland' of a CFO's job. I am an independent, black corporate strategist and turnaround specialist; in the market I usually come up against the big four consulting firms, run by white executives in the main. I have never asked the client to restructure the assignment to allow me to brush up on aspects I am short on. As black professionals, we must avoid at all costs to be treated as basket cases or else we will stay perceived as second rate citizens who need to be affirmed in order to execute anything effectively. Nedbank decision; simply poor!!
By: siya_msomi On: Oct 19 2009 9:44AM
This is a very weak article. Why did she not just ask to be skilled to competency before accepting the title; for that is just what it is. She is no CFO. That much is very clear. For Nedbank to even come up with this idea is brave but shocking.
By: jog1 On: Oct 19 2009 9:50PM
what Malema and co want Nedbank to do is exactly what the ANC do in the municipalities, Eskom, Transnet, SABC etc. They appoint cadres who are not properly skilled or qualified and run these organisations into the ground through corruption, stupidity etc. Nedbank is a private , public company and subscribe to proper corporate governance - something the ANC do not understand.
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