Concerns are being raised about the exodus of top executives, high profile suspensions, and business liquidity at African Bank, a week after it pulled out of a deal to acquire Eskom Finance Company.
African Bank has faced recent exits at top level, with several senior roles currently filled on an interim basis across a number of departments.
Among the high-profile departures are former CEO Kennedy Bungane, who, after a highly charged board meeting was pushed out. His departure was prompted by a combination of poor financial performance and regulatory reporting errors.
Sibongiseni Ngunde, CEO of personal banking, has left the bank through mutual agreement. Gcobisa Ntshona, also resigned and left, with the bank also attributing the departure to mutual agreement.
Sibusiso Khumalo, chief marketing officer, has been on suspension over the past three months, with no feedback as to why or if any future action has been taken against him.
Insiders within the bank have also questioned the appointment of Zweli Manyathi as interim group CEO, pointing to him nearing retirement. “He is a few months from retirement. How can they appoint a 65-year-old to steer the company?” asked a bank insider who
requested not to be named.
Despite talk of a turnaround, the insider said results expected in June, would show huge losses at African Bank, pointing to a liquidity crisis.
Responding to questions, the bank rejected suggestions that it was operating on autopilot.
“African Bank has a strong, experienced exco and senior leadership team that continues to run the business effectively. The executive leadership team, led by Zweli Manyathi, is actively involved in both internal and external recruitment processes to appoint permanent executives with the right expertise to support long‑term sustainability, strengthen governance, and enhance customer experience,” the bank said in the statement.
It also denied claims that the Reserve Bank’s Prudential Authority had played a role in its decision to abandon a proposed deal to acquire Eskom’s staff home loan book. The denial follows claims by another bank insider, who told Sunday World that the transaction collapsed after the authority raised concerns about African Bank’s liquidity constraints.
Eskom announced in Sens this week that plans to dispose of its staff home loan book, assets housed in Eskom Finance Company, and its interest in Nqaba Finance 1 RF had fallen through after African Bank withdrew from the deal.
A sale agreement regulating the proposed transaction for Eskom’s staff home loan book was concluded in April 2025, subject to the fulfilment of certain conditions precedent within agreed timelines. Eskom said the deadline for meeting the conditions precedent was initially set for September 30, but was later extended by mutual agreement to March 31. Despite the extension, some of the conditions were not met by the revised deadline.
In response to Sunday World questions, African Bank said the decision not to proceed with the Eskom deal was taken by the bank’s board and “not as a result of due influence from the Reserve Bank.”
The proposed acquisition was expected to give African Bank further presence in the competitive home‑loan market, while also providing access to a stable, salaried borrower base – a move that would have strengthened the bank’s balance sheet and loan portfolio.
A source said African Bank had struggled to raise the R3-billion required to acquire the 20 000 strong home loan book, forcing the Central Bank – a shareholder in African Bank – to intervene.
However, a SARB spokesperson said: “The SARB does not play an active role in the day-to-day management of African Bank and is not involved in any decision-making processes. The SARB does, however, play a role as a shareholder in resolutions passed at the annual general meeting.”
The central bank added that it does not comment on individual entities it regulates, referring further questions to African Bank.
In a statement issued after the collapse of the deal, African Bank said its board, following careful consideration, decided that the Eskom agreement no longer aligned with the current strategic objectives of the bank, “and our stated focus on consolidation and stabilisation of the existing business portfolio”.
“Having acquired three financial entities in the past five years – these being the assets and liabilities of Ubank, Grindrod Bank, and the CPF and CEF businesses of Sasfin – African Bank has opted for a period of consolidation.”
African Bank is jointly owned by the SARB, which holds a 45% stake, the Government Employees Pension Fund (22.5%), a banking consortium comprising Absa, Nedbank and Standard Bank, FNB and Capitec who hold 22.5%, and empowerment vehicle Ikamva Lethu, which owns the remaining 10%.
The ownership structure was established after African Bank was placed under curatorship in August 2014.
At the time, the Reserve Bank found that it had conducted its business recklessly and negligently, and in certain instances with the intent to defraud depositors, creditors or other affected parties.
Last month African Bank reportedly suffered a setback after the Financial Services Tribunal upheld a finding by the Reserve Bank’s Prudential Authority that the bank attempted to artificially boost its capital position.
The tribunal compared the conduct to the discredited practice of “kite‑flying”.
The transaction effectively involved a web of intra‑group loans, dividends and share subscriptions designed to inflate the bank’s capital adequacy ratio.
- African Bank is experiencing significant executive turnover, high-profile suspensions, and liquidity concerns following its withdrawal from a deal to acquire Eskom Finance Company.
- Former CEO Kennedy Bungane was ousted after poor financial performance and regulatory errors; other senior executives, including the CEO of personal banking and chief marketing officer, have also left or been suspended.
- The bank appointed interim CEO Zweli Manyathi, nearing retirement age, raising internal doubts about leadership stability and the bank’s future performance amid expected substantial losses.
- African Bank denied claims that the Reserve Bank's Prudential Authority influenced the collapse of the Eskom deal, attributing the withdrawal to strategic consolidation after failing to meet deal conditions and raise required funds.
- African Bank continues to face regulatory scrutiny, including upheld findings of attempts to artificially inflate capital, with its ownership including the Reserve Bank and major financial institutions after being placed under curatorship in 2014.
