A few senior staff members face disciplinary action for leaking confidential company information.
If the walls at Absa could speak, there would be a better understanding of what is happening at the bank’s top management.
Since the walls cannot speak, an independent report had to do the talking. It revealed that some senior managers are involved in leaking Absa’s information, prompting the bank to take disciplinary action against the individuals.
In recent years, Absa has been known for its leadership instability, marked by frequent changes in chief executive officers (CEOs) since 2019. This year alone, the bank has announced it will be getting a new CEO and a new chairman of the board.
There have been reports that suggest former CEO Arrie Rautenbach’s early retirement and the leaked information are related. However, Absa told The Citizen this is not true.
Rautenbach left for the reasons stated in the Stock Exchange News Services(SENS) announcement dated 19 August 2024.
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Leaked information
Absa confirmed to The Citizen on Monday that it has commissioned an independent investigation, which included the leaking of confidential company information in its scope.
To ensure its impartiality, the investigation was conducted by ENS Forensics, an independent third-party forensic firm.
“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.”
Information leaked outside official channels
Absa added that none of Absa’s established whistleblower channels were used, and 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”.
“We value the critical importance of whistleblowers in maintaining organisational integrity and have robust protections in place for any individual who comes forward with legitimate concerns.
“Our employees have access to multiple secure channels through which they can report issues confidentially or completely anonymously, including an independently managed external facility operated by one of the big four audit firms to ensure impartiality and trust.”
Absa did not disclose how the information was leaked.
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What information was leaked?
The bank stated that a few senior staff members are involved in the disciplinary action. “Absa is following its internal disciplinary process. It would not be fair or appropriate to speculate about the outcome of the enquiry and any subsequent actions.”
The bank further stated it is bound by its commitment to strict confidentiality and will not provide additional commentary on the specifics of this case.
TimesLIVE reported earlier in May that Rautenbach’s departure from the bank may not be what Absa initially stated. It is suggested that a leak of important information may have led to the former CEO’s early retirement.
Leadership instability
Absa has undergone significant changes since the departure of its long-serving CEO, Maria Ramos, in 2019.
Since then, the bank has had six interim and permanent CEOs, which raises the question, “What is going on at Absa?”
The latest to be appointed as CEO is Kenny Fihla, the former deputy CEO of Standard Bank. He will commence his duties on 17 June 2025. Will he last longer than other CEOs since Ramos’ departure?
The latest prominent figure to go on early retirement is Sello Moloko, the bank’s chairman. Absa said Moloko is stepping down to focus on his family, personal business interests, and community commitments.
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