THE South African United Business Confederation (SAUBC) has lambasted Absa Group for sacking chief executive officer Daniel Mminele following differences with the board over strategy and culture, just 15 months after he became the bank’s first black CEO.
This comes after the announcement on Tuesday that Mminele will be stepping down as CEO of Absa Group and Absa Bank at the end of April 30, 2021.
The banking group said the departure was a result of conflicting views when it came to transformation and strategic vision of Absa.
However, sources within the bank said Absa Group’s chairman, Wendy Lucas-Bull, regularly interfered with the work of Mminele, and micromanaged him, in total disregard of corporate governance and the separation of the roles between the board, its chairman of the board and senior executives.
SAUBC president George Sebulela said the black business group seeks an urgent meeting with the National Treasury, South African Reserve Bank and the Financial Sector Conduct Authority (FSCA) to discuss the sudden exit of Mminele at Absa.
Sebulela said the meeting would discuss the broader policies of compliance and transformation in the financial services sector.
“We are saddened and disappointed that the Absa board – and in particular the chairman of the board could not find each other with the CEO over the strategic direction of the bank,” said Sebulela.
“Mminele is an astute and consummate professional who proved himself at the South African Reserve Bank when he was deputy governor. What could have been so huge that they couldn’t find each other? Anyway we will also endeavour to engage with Absa to understand the nature of the misunderstanding and non-alignment of strategy and culture with the board.”
Sebulela said the black business group is also calling Parliament to convene an urgent meeting with the board of Absa Group to account to the committee on what happened between it and Mminele.
In a statement, Mminele said: “It is indeed regrettable that we should have had to part ways so soon on our journey. It is, however, important for the chief executive to be in complete alignment with the board on critical issues such as strategy and culture. I became enamoured of the brave, passionate and ready people of Absa and wish the group well for the future.”
In a separate statement, Absa Group chair, Wendy Lucas-Bull said the parting of ways with Mminele reflects divergent professional views and approaches.
“It is a matter of considerable regret that we reached this position,” said Lucas-Bull.
Lucas-Bull said the parting “was a very difficult decision that was not reached lightly,” but it was in the best interest of the company and Mminele.
The group’s CFO, Jason Quinn will take over from Mminele as interim CEO.
Quinn has been the CFO since August 2016.
Prior to this job he has been with the group in various senior roles since 2008, and before that was a partner at Ernst & Young.
Absa said it will announce the appointment of an interim CFO in the coming days, pending regulatory approvals.
The departure of Mminele is further disruption to the top leadership of the country’s third-largest lender, following the death of former deputy CEO Peter Matlare, weeks ago.
It will also mean with the appointment of Quinn, Absa will once again be run by a second interim CEO within two years.
- Inside Politics
