Absa chair Sello Moloko expected to step down

Absa chair Sello Moloko is expected to step down from his position this week. 

According to several sources within Absa, Moloko could be replaced with Rene van Wyk, who has served as an ordinary member of the board for a number of years.

Van Wyk was previously appointed acting Group CEO after the departure of Maria Ramos in 2019. He was succeeded by Daniel Mminele, the first black CEO of the bank. 

The changes come as Absa awaits the arrival of its newly-appointed CEO Kenny Fihla, who is due to start on June 17 pending regulatory approval.

While reasons for Moloko’s premature departure were not immediately clear, speculation was rife in the past two weeks that he had been entangled in an investigation by ENS, described as a whistle-blower witch-hunt by some within the bank, relating to leaks of crucial information that led to the departure of former Group CEO Arrie Rautenbach.

“Arrie’s departure has dragged Moloko with him. The public statement is likely to say Moloko views the past year and Absa’s performance as having been difficult and he needed to step aside. But the truth is he came under very heavy scrutiny from his board colleagues on certain decisions and disclosures,” said the source.

Van Wyk’s appointment comes on the heels of the Rautenbach's premature departure. The latter left the group after a scandal relating to violations of US regulations for paying Cowyk Fox, former CEO of Everyday banking, a salary while he was a US citizen, without making concomitant social security payments Absa could not make because Fox was not an employee of its US division. His departure was couched as early retirement.

Another source said they were surprised Nonhlanhla Mjoli-Mncube was not considered for board chairmanship given that she had been an independent non-executive lead director since October 2020. 

The source said: ”It’s simple. The bank is trying very hard to strike a racial balance in power distribution. You will recall when the CEO was white (Rautenbach), the bank had a black chair (Moloko).

"Now that the bank has a black CEO (Fihla), it is likely to get a white chair (Van Wyk). It’s difficult to miss the musical chairs. It may be confusing to some, but there is method to the changes.

'The bank is trying to appease its core Afrikaner market while making inroads into the emerging black market,” said the source. 

Absa comment will be added once received.

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