By Lehlohonolo Lehana.
Absa has fired Sipho Pityana as a director after He failed to convince the board that his actions are not harming the bank.
On Tuesday, the board invited Pityana to address “allegations that he had neglected or had been derelict in the performance of his functions as a director of the boards and had failed to conduct himself in the interests of Absa”.
But following his presentation, directors still found that Pityana pursued his own personal interests to the detriment of Absa and “thereby created a material and sustained conflict between his interests and those of Absa”.
While the boards respect Mr Pityana’s individual right to administrative fairness, unfortunately in this matter, the boards concluded that the pursuit of his personal interest at the cost of the group’s interest created a sustained and irresoluble conflict. Absa has a duty to its stakeholders to put the group’s interest before individual interests.”
Pityana dropped a bombshell in October when he went to the high court seeking that it declare that the Prudential Authority, which is part of the Reserve Bank, had unlawfully conducted an “informal process” with Absa, leading to the lender rescinding a plan to nominate him as chair.
Absa and the Prudential Authority have denied allegations they acted unfairly.
Earlier in November, Pityana was axed as Absa’s lead independent director and chairman of the remuneration committee.