‘Outrageous and unlawful’: Sipho Pityana threatens Absa with legal action after axing | Fin24

Fired Absa director Sipho Pityana. (Netwerk24)

  • Sipho Pityana has instructed his legal professionals to take motion towards his dismissal from the Absa board.
  • He believes the choice was “outrageous” and “unlawful”.
  • He can also be concerned in a authorized dispute with the Reserve Bank’s Prudential Authority, which he accuses of interference in his appointment as Absa chair.

Fired Absa director Sipho Pityana has described his ousting as “outrageous” and “unlawful” as he prepares to mount a authorized problem towards the bank’ board to fight the decision.

Speaking to PowerFM on Wednesday night, Pityana stated the board invited him to resign earlier this month, however he challenged them to exhibit whether or not they had causes to justify the choice.

“I believe that their decision is outrageous, it is unfortunate and unlawful from my perspective,” he stated.

In a press release earlier on Wednesday, Pityana stated he had instructed his authorized group to take the choice of the Absa board to terminate his directorship on overview with the courts.

“My reading of the reasons for the board’s resolution is that my alleged neglect or dereliction of the performance of my functions all comes down to the fact that I took, or had the temerity to take, the Prudential Authority to court seeking a declarator that its conduct was unlawful,” he stated.

The courtroom problem follows his motion once more the Reserve Bank’s Prudential Authority, which he accuses of blocking his appointment as Absa chair.

He stated the Absa board had given him a 48-hour discover to resign as a director on November 2, stating that his authorized motion towards the Prudential Authority had resulted in a misalignment of pursuits between his and people of the financial institution.

At the guts of Pityana’s authorized wrangles with Absa are points round his December 2020 resignation as AngloGold Ashanti chairman.

It later emerged that he had confronted sexual harassment allegations, whereas heading the board of the gold producer. 

He claims that former Absa CEO Maria Ramos knowledgeable the Prudential Authority concerning the allegations once they have been contemplating his suitability to chair the Absa board. Absa indicated to the authority that the financial institution intend to appoint him as chair, Pityana says.  

Pityana advised PowerFM that the Reserve Bank doesn’t ordinarily become involved within the nomination technique of candidates, however can solely accomplish that after the choice has been made by the board.

“To drag the regulator to engage before that process is in fact to invite the regulator to be part of a selection and appointment of a director and the law does not envisage that.”

“The appointment sits with the bank…. and for the regulator to get involved in this process it acted outside of its scope and mandate, and it acted unlawfully,” he said.

He additional defined that the Reserve Bank’s involvement was an “affront” to him because it implied that he was not a “fit and proper person”.

“It is prejudicial to me and is not good for governance of the bank and the financial services in general.”

In the authority’s affidavit, PA CEO Kuben Naidoo stated no written discover of his nomination was ever submitted by the financial institution to the PA.

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