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The startling reasons behind former Nedbank executive’s firing

Court upholds dismissal of Anele Mpungose over comments that black professionals are ‘lazier’

The Nedbank Offices in Sandton, Johannesburg. Picture: FREDDY MAVUNDA/BUSINESS DAY
The Nedbank Offices in Sandton, Johannesburg. Picture: FREDDY MAVUNDA/BUSINESS DAY

The reasons for the dismissal of former Nedbank executive head for human resources Anele Mpungose have finally come to the fore, with her having been found to have belittled black professionals, calling them lazier and more incompetent than their white colleagues.

The startling reasons were revealed in Mpungose’s legal battle with Nedbank over her dismissal in 2019 that she is challenging.

She was also dismissed for abusing her position to score a car finance deal for a luxury BMW for one of her associates.

Several black employees at Nedbank came to the fore complaining about Mpungose’s bullying over an extended period, particularly along racial lines. One of the allegations levelled against her was that she referred to black professionals as lazier and more incompetent than their white counterparts and that they do not deliver.

She is also said to have criticised the performance of the lender’s black executives to her subordinates, and would refer to some employees as idiots, shouting loud enough for a number of people in the office to hear the exchange.

Mpungose was once one of Nedbank’s youngest cluster managers.

She was also found guilty of gross dishonesty for using her employment benefits to obtain favourable terms on a car purchase with the bank for an associate.

In that instance, the bank and Mpungose entered into an agreement in which she purchased a BWM X6 using her fringe benefit tax. Though the vehicle was registered in her name, the liability for repayments was transferred to her associate.

Disciplinary hearing

One of the terms of the agreement was that the vehicle would be financed at an annual interest of 6.5% due to Mpungose’s fringe benefit tax. At the time of the purchase, the prime rate was 9%.

She was found guilty at a disciplinary hearing of securing financial benefit for a third party at the expense of Nedbank, in circumstances in which she knew her associate would not have qualified for such a favourable interest rate.

Mpungose challenged her dismissal in the labour court, arguing that she did not receive a fair arbitration hearing and was not allowed to challenge evidence presented by Nedbank. She also argued that the arbitrator considered irrelevant evidence and disregarded material evidence.

The labour court dismissed her arguments and upheld her dismissal.

“In so far as the applicant suggests that she failed to receive a fair arbitration hearing, the record indicates otherwise. The applicant was afforded a full opportunity to cross-examine all the first respondent’s [Nedbank’s] witnesses and call her own,” the judgment reads.

“The applicant submitted that the arbitrator merely mimicked the version of the chairperson of the disciplinary hearing. This in my view was not the case, as is evident from the above reasoning. Moreover, the transcripts of the arbitration bear testimony to the fact that the arbitrator applied his mind and clearly, when listening to all evidence over several days, had the opportunity to render a reasonable ruling,” the judgment reads.

Mpungose told Business Day that the allegations against her were part of a witch-hunt.

“Black professionals, including myself, are not lazier and [more] incompetent than their white counterparts. This is proven by my competence as a black professional. I was promoted by the same bank, and have always advocated for the appointment of black professionals throughout my career,” she said through her lawyers.

“During my tenure at Nedbank, I successfully nurtured and led a team that was predominantly black. This allegation is not only false but smacks of [a] witch-hunt ...

“My case is the subject of an appeal process and I am confident that I will be vindicated in the end.”

Nedbank said: “While this was an isolated incident and in no way indicative of the culture in the organisation, Nedbank takes racism very seriously and acts promptly to ensure appropriate consequence management.”

khumalok@businesslive.co.za

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