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Sipho Pityana removed by Absa Group and Absa Bank Boards as a director of the Boards

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The Absa Group and Absa Bank Boards have removed Sipho Pityana as a director of the Boards, with immediate effect, according to a statement from the Absa Group.

The Absa Group and Absa Bank Boards have removed Sipho Pityana as a director of the Boards, with immediate effect, according to a statement from the Absa Group. Photo: Simphiwe Mbokazi

The Absa Group and Absa Bank Boards have removed Sipho Pityana as a director of the Boards, with immediate effect, according to a statement from the Absa Group.

The decision to remove Pityana comes after a meeting on 23 November 2021 where he had the opportunity to address allegations from the Absa Boards’ that he had neglected or had been derelict in the performance of his functions as a Board member and that he had failed to conduct himself in the interests of the group.

“While the Boards respect 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 Absa Group said.

Pityana’s removal as director follows a decision on 12 November 2021 to remove him as lead independent director and chair of the remuneration committee.

Last month the Absa Group was involved in a spat with Pityana after he was not appointed as chair of the board of the bank. Absa instead appointed Sello Moloko as chairperson.

Pityana served legal papers to the South African Reserve Bank Prudential Authority citing that the authority blocked him from becoming chair of Absa bank by conducting an informal process and consulted with third parties, including former Absa bank CEO Maria Ramos, about whether he was “fit and proper” for the role.

Pityana said Ramos used an allegation of sexual harassment against him which dates back to 2020 while he was chairperson of AngloGold Ashanti.

At the time, Absa confirmed the group was mentioned in proceedings instituted by Pityana, where he seeks a declaratory order against the Prudential Authority.

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