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The Citizen
22-07-2025
- Business
- The Citizen
Is Absa on a witch-hunt? ‘Leakers' placed on leave
The plot thickens as it is alleged that the leakers are denied access to the report that details the incident. Absa, one of South Africa's banking giants, is once again making headlines for its questionable ways of handling internal scandals. The bank has quietly placed senior managers accused of leaking company information on leave of absence. The bank initiated disciplinary action process against these individuals in May, following a report that confirmed the leak. It remains a mystery what information was leaked. The bank has dismissed suggestions that the information relates to the reason why former CEO Arrie Rautenbach went into early retirement. However, the plot thickens as it is alleged that the leakers are denied access to the report that details the incident. ALSO READ: Is someone sabotaging Absa? Senior managers face disciplinary action for leaking information Absa places employees on leave Daniel Munslow, Managing Executive: Group Communications at Absa, has denied allegations that these individuals have been fired, following reports that suggest they have been fired. 'It is not true that any employees have been fired with regards to the ENS investigation,' he told The Citizen. 'Absa commissioned an independent investigation into serious misconduct, including the leaking of confidential company information. As a result, the implicated employees agreed to take a leave of absence as part of the standard procedural requirement. 'The investigation, conducted by ENS Forensics, concluded that there is prima facie evidence of serious misconduct, which will be presented in a formal disciplinary enquiry in accordance with proper protocols and procedures, including being chaired by an independent senior counsel.' Allegations against Absa An article by The Sunday Times citing unnamed sources at the bank screams witch-hunt by Absa. First, it is alleged that Absa does not have any hard evidence against these individuals; however, the bank maintains it has established prima facie misconduct by these employees. Secondly, a source told the publication that the outcome of the investigation is inconclusive, as there is no evidence indicating which employee leaked what information, or whether it was leaked via email or handed over to someone. The investigation could not determine exactly what happened. Thirdly, another source alleged that the process by Absa denied the accused leakers access to the report that accuses them. ALSO READ: Reserve Bank unlawfully interfered in Absa chair appointment, says court Whistleblowers channels Absa's reply to The Citizen maintains that none of Absa's established whistleblowers' channels were used by any of the accused leakers. 'At no point did the employees involved identify themselves as whistleblowers or indicate they were making protected disclosures as defined by the Protected Disclosures Act, or Absa's policy, despite having the opportunity to do so.' Munslow said the bank cannot provide any further information on the case as they are bound by their commitment to strict confidentiality. This is to ensure procedural fairness for all parties involved and safeguard the privacy rights of the employees. Change in leadership Absa has been known for its leadership instability, marked by frequent changes in chief executive officers (CEOs) since 2019. Kenny Fihla began his tenure as CEO in June, replacing acting CEO Charles Russon. Will things be different this time around? Russon was appointed to act as CEO following Rautenbach's early retirement. No specific reason was given for his early retirement, except that he and the board have agreed on the matter. Reports have suggested that Rautenbach went on early retirement because of this leaked information. Some trouble surfaced during his tenure, including the appointment of Cowyk Fox to a senior role, despite him residing in the US. Fox was a US citizen at the time, which potentially implicates Absa in violating American federal tax laws. ALSO READ: Prudential authority fines Absa R10 million for FICA non-compliance Two black men at the helm? No ways Among other troubles, Rautenbach had been accused of attempting to remove Saviour Chibiya, the head of the bank's African operations, while failing to take action against senior white executives who had underperformed. Screaming racism. The bank also announced the early retirement of its chairman of the board, Sello Moloko. Stating he will focus on his family, personal business interests, and community commitments, unlike Rautenbach's early retirement announcement, which had no reasons. It is understood Moloko led the process, which saw the appointment of Fihla, but it does not make sense why he would leave before his recruit arrives. Had Moloko stayed, it would have been the first time Absa has had two black people as CEO and Chairperson. NOW READ: Absa and Standard Bank raised their minimum salaries for 2025 – here's the new pay
The Citizen
20-05-2025
- Business
- The Citizen
Is someone sabotaging Absa? Senior managers face disciplinary action for leaking information
A few senior staff members face disciplinary action for leaking confidential company information. If the walls at Absa could speak, there would be a better understanding of what is happening at the bank's top management. Since the walls cannot speak, an independent report had to do the talking. It revealed that some senior managers are involved in leaking Absa's information, prompting the bank to take disciplinary action against the individuals. In recent years, Absa has been known for its leadership instability, marked by frequent changes in chief executive officers (CEOs) since 2019. This year alone, the bank has announced it will be getting a new CEO and a new chairman of the board. There have been reports that suggest former CEO Arrie Rautenbach's early retirement and the leaked information are related. However, Absa told The Citizen this is not true. Rautenbach left for the reasons stated in the Stock Exchange News Services(SENS) announcement dated 19 August 2024. ALSO READ: Absa and Standard Bank raised their minimum salaries for 2025 – here's the new pay Leaked information Absa confirmed to The Citizen on Monday that it has commissioned an independent investigation, which included the leaking of confidential company information in its scope. To ensure its impartiality, the investigation was conducted by ENS Forensics, an independent third-party forensic firm. 'The investigation has concluded that there is prima facie evidence of serious misconduct, which will be presented in a formal disciplinary enquiry in accordance with proper protocols and procedures, including being chaired by an independent senior counsel.' Information leaked outside official channels Absa added that none of Absa's established whistleblower channels were used, and at no point did the employees involved identify themselves as whistleblowers or indicate they were making protected disclosures as defined by the Protected Disclosures Act or Absa's policy, 'despite having the opportunity to do so'. 'We value the critical importance of whistleblowers in maintaining organisational integrity and have robust protections in place for any individual who comes forward with legitimate concerns. 'Our employees have access to multiple secure channels through which they can report issues confidentially or completely anonymously, including an independently managed external facility operated by one of the big four audit firms to ensure impartiality and trust.' Absa did not disclose how the information was leaked. ALSO READ: Former customer charges Absa with perjury and defamation What information was leaked? The bank stated that a few senior staff members are involved in the disciplinary action. 'Absa is following its internal disciplinary process. It would not be fair or appropriate to speculate about the outcome of the enquiry and any subsequent actions.' The bank further stated it is bound by its commitment to strict confidentiality and will not provide additional commentary on the specifics of this case. TimesLIVE reported earlier in May that Rautenbach's departure from the bank may not be what Absa initially stated. It is suggested that a leak of important information may have led to the former CEO's early retirement. Leadership instability Absa has undergone significant changes since the departure of its long-serving CEO, Maria Ramos, in 2019. Since then, the bank has had six interim and permanent CEOs, which raises the question, 'What is going on at Absa?' The latest to be appointed as CEO is Kenny Fihla, the former deputy CEO of Standard Bank. He will commence his duties on 17 June 2025. Will he last longer than other CEOs since Ramos' departure? The latest prominent figure to go on early retirement is Sello Moloko, the bank's chairman. Absa said Moloko is stepping down to focus on his family, personal business interests, and community commitments. NOW READ: Do you still need cash? Banks closing ATMs, except Capitec
