Absa chief’s exit leaves a bitter taste with union

SA Society of Bank Officials believe Daniel Mminele was pushed out at Absa. Picture: Supplied.

SA Society of Bank Officials believe Daniel Mminele was pushed out at Absa. Picture: Supplied.

Published Apr 23, 2021

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By Itumeleng Mafisa

The relationship between the band Absa and the financial staff union SA Society of Bank Officials (Sasbo) has gone sour following the announcement of the departure of the bank’s chief executive Daniel Mminele.

The bank had asked to meet with trade unions on Wednesday afternoon to discuss Mminele’s departure but union leaders say they are still puzzled by Mminele’s departure despite the bank’s efforts to explain reasons for the chief executive’s leaving.

Mminele, who was appointed in January last year, reached an agreement with Absa that would see him step down as a director and group chief executive with effect from April 30.

The Star understands that disagreements between Mminele and some senior executives over the implementation of its strategy became so serious that the board feared an increased risk of a “loss of talent”.

The general secretary of Sasbo Joe Kokela said the union had enjoyed a great relationship with Absa under Mminele’s leadership. The union said it believed Mminele was pushed out.

“We are very disappointed as a finance union. We believe that Absa is not a place to go for people of this country, we don’t believe that their executives represent the demographics. Daniel was bringing sanity there, but there was kicking and screaming from the executives and the board of Absa,” Kokela said.

He said the union expressed its displeasure over the manner in which the Absa board and executives had conducted themselves.

“They are fighting against transformation. You can’t take the CFO and make him a CEO. They don’t even have good corporate governance,” he said.

Kokela said the union had a problem with the lack of transformation of banks in South Africa.

“At some stage, we have to look at their shareholders and executives. This thing of the bank to say it was unanimously decided by the board, then we have to look who is on the board and then we have to ask: who does the executive of Absa compose of and that will tell us if that represents the demographics of the country?” he said.

Kokela said the union would be mobilising other Cosatu unions to ensure the current Absa chairperson does not sit on any other board when her term finishes at Absa.

“We believe that she has failed the country and that she has failed us,” he said.

The Star

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