Absa has seen significant internal volatility over the past six years with internal turmoil and leadership changes.
The turbulence within Absa shows no signs of easing, with new reports indicating that the bank is initiating disciplinary action against certain employees following the outcome of a forensic investigation that uncovered serious misconduct.
According to a report on News24, the banking group has launched disciplinary action after ENS Forensics uncovered evidence that some staff members may have leaked important company information.
In an emailed response to Moneyweb, Absa noted that the “independent investigation” included the leaking of confidential company information in its scope.
“The investigation has concluded that there is prima facie evidence of serious misconduct, which will be presented in a formal disciplinary enquiry in accordance with proper protocols and procedures including being chaired by an independent senior counsel.”
The information was leaked without going through any of the bank’s formal whistleblower channels, the bank adds.
“At no point did the employees involved identify themselves as whistleblowers or indicate they were making protected disclosures as defined by the Protected Disclosures Act, or Absa’s policy, despite having the opportunity to do so.”
Absa further notes it is bound by its commitment to strict confidentiality to protect the integrity of its disciplinary process and safeguard the privacy rights of employees. “We will therefore not be providing additional commentary on the specifics of this case.”
Leadership shakeup
Earlier media reports suggest that the leaked information may have led to the abrupt early retirement of former CEO Arrie Rautenbach, who stepped down from the position in October 2024 and entered a six-month garden leave period.
According to TimesLIVE, Rautenbach’s departure may have revolved around Cowyk Fox, former CEO of Absa’s Everyday Banking division. Fox received a salary from Absa while he was a US citizen without making the appropriate US security contributions. This was allegedly in violation of US regulations.
The latest reports of internal volatility come barely two weeks after Absa Group chair Sello Moloko announced he would step down from his position on 15 July and less than a month before Kenny Fihla, former Standard Bank executive, takes over as the new CEO.
Absa has seen significant leadership changes in recent years. Since the departure of long-serving CEO Maria Ramos in 2019, the bank has had six interim and permanent CEOs in six years. Its pace of transformation and diversity at senior levels have also drawn scrutiny in some quarters.
Absa’s share price traded at R166 at around 4pm on Monday, 2.9% lower than Friday. However, the decline was not isolated – shares of other major South African banks also slipped.
The disclosure does not necessarily have to be in a formal “declaration.” The Act protects an employee who makes a “protected disclosure. The focus is on the nature of the disclosure and the manner in which it is made.
It is not a strict legal requirement to always go to the employer first before any other type of disclosure can be protected.
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Updated: 29 May 2025 Thursday
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