Absa removes Sipho Pityana as a director of Absa Group and Absa Bank with immediate effect

The company has said in a statement the boards of the two Absa companies met with Sipho Pityana yesterday. During the meeting he had the opportunity to address concerns the board’s raised that he “neglected or had been derelict in the performance of his functions as a director of the boards and had failed to conduct himself in the interests of Absa”.

Listen/ read: Pityana heads to court over Absa chairmanship

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According to the statement, the boards considered Pityana’s responses but concluded that “Mr Pityana pursued his own personal interests to the detriment of Absa and thereby created a material and sustained conflict between his interests and those of Absa”.

Read: The escalating woes at Absa as Pityana removed as lead independent director

“While the boards respect Mr Pityana’s individual right to administrative fairness, unfortunately in this matter, the boards concluded that the pursuit of his personal interest at the cost of the group’s interest created a sustained and irresoluble conflict. Absa has a duty to its stakeholders to put the group’s interest before individual interests,” the statement reads.

The decision to remove Pityana as director followed an earlier decision to remove him as lead independent director and chairman of the remuneration committee.
Pityana’s removal followed after Pityana, served court papers on the Prudential Authority of the Reserve Bank in October, claiming his nomination to become the bank’s chairman had been unfairly blocked.

He claimed his nomination was blocked after Maria Ramos informally informed the Prudential Authority’s head, Kuben Naidoo, of a sexual harassment incident and investigation involving Pityana while he was the chairman of AngloGold Ashanti.

Ramos was a former CEO at Absa and succeeded Pityana as chairman at AngloGold Ashanti when he resigned late last year. Pityana strongly denied the harassment charges and claims the Prudential Authority did not follow proper procedures and did not offer him an opportunity to defend himself.

Absa eventually appointed Sello Moloko at its new chairman to replace Wendy Lucas-Bull when she retires in March next year.

*This is a developing story.

Source: moneyweb.co.za