Absa boots Sipho Pityana out of its board

Johannesburg – Banking giant Absa has finally kicked Sipho Pityana off its board.

The bank in a statement said Pityana will no longer be a non-executive of the company.

“The Boards were of the view that, through his conduct, Mr Pityana had neglected, or been derelict in the performance of, his functions as a director of the Boards. This followed a meeting with Mr Pityana in which he was provided with an opportunity to address the Boards on this issue. The Boards considered Mr Pityana’s responses and came to their decision after extensive deliberation,” Absa said in a statement.

The writing was on the wall for Pityana after Absa booted Pityana off some of the key subcommittees of its board, just weeks after it “overlooked” for the chairman of the board position. Pityana as the Lead Independent Director of Absa Group and Absa Bank, chairman of the Remuneration Committee (RemCo) and member of the Directors’ Affairs Committee (DAC), with immediate effect.

Absa in October tapped seasoned banker Sello Moloko as its next chairperson, bringing an end to Wendy Lucas Bull’s near 10 year stay at the helm of the lender.

Have you read: Absa executive leaves to join Standard Chartered

Moloko, who has 30 years in the financial services industry will officially run the bank valued at R121 billion in April, next year.

He has previously chaired the boards of Alexander Forbes, for 10 years and has also chaired the boards of Sibanye-Stillwater, and General Reinsurance Africa Limited (a Berkshire Hathaway company) among others.

Moloko is currently the chairman of the Telkom board and Momentum Metropolitan. His appointment at Absa will see him relinquish his Momentum Metropolitan position.

Moloko’s appointment was not without controversy after Pityana alleged he was blocked to be appointed as Lucas Bull’s successor by the Reserve Bank’s Prudential Authority.

Absa has gone through leadership turmoil in recent months. The lender’s first black CEO Daniel Mminele resigned from the position in April after clashing with the Lucas Bull led board over strategy.

Also read: Absa removes Sipho Pityana from key board committees

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