The Black Business Council (BBC) on Wednesday congratulated Sello Moloko on his appointment as chair of Absa but also said it would seek an urgent meeting with head of the banking regulator over accusations made by Sipho Pityana, who also serves on the Absa board.
Pityana dropped a bombshell on Monday when he accused the Prudential Authority (PA) of unlawfully blocking his appointment as chair of Absa through an informal process rather than following procedures outlined in the Banks Act. The PA must approve nominations for board appointments and key executives to determine whether candidates are fit and proper.
Pityana claims that the head of the PA, Kuben Naidoo, was influenced by Maria Ramos, former CEO of Absa, to block his appointment by bringing Naidoo’s attention to an adverse finding against him in a sexual harassment investigation. Absa had previously obtained legal opinion that questioned the thoroughness of the investigation.
In an affidavit this week, Pityana accused Ramos, with whom he had disagreements when they were both on the board of AngloGold Ashanti, of using “unfettered access” to the regulators to thwart his appointment. He argued that he had been defamed by the implication that he is not a “fit and proper person”, and was not given due process by the PA to clear his name.
The BBC, which Pityana has previously accused of complicity in state capture, said it has serious concerns about allegations of interference by the PA. Pityana was prominent in the campaign to remove former president Jacob Zuma from office.
“The BBC will request an urgent meeting with Kuben Naidoo, the deputy governor of the [Reserve Bank] and the CEO of the Prudential Authority in order to fully understand the principles of what happened,” said BBC CEO Kganki Matabane.
It notes that Moloko was a highly qualified and regarded professional in the financial and other sectors of the economy. A former CEO of Old Mutual Asset Managers, Moloko has previously chaired financial services company Alexander Forbes and miner Sibanye-Stillwater.
“The BBC will work with Sello to ensure that the economic transformation project at Absa proceeds unabated. We are positive that he will usher in a new CEO who will enhance the gender and racial diversity that is so desperately required at the top echelons of corporate SA,” said Matabane.
Pityana has applied to the high court for a declaratory order that the PA’s conduct was unlawful. Absa, which says it never made an offer to Pityana and had appointed Moloko after a “robust” process, was named as a responded in Pityana’s suit. AngloGold said his accusations were baseless and that the matter of who chairs Absa was “between Mr Pityana and the board of that company”.
The latest boardroom turmoil at Absa, which in April parted ways with its first black CEO, Daniel Mminele, over differences on strategy, has had no obvious impact on the share price. While it closed 1.4% lower on Wednesday, that followed gains of 1.3% and 0.96% the previous two days, leaving it 18.96% up in 2021 so far.
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