Pityana prepares for another legal showdown with Absa and SA Reserve Bank

IOL News

14-07-2025

Sipho Pityana said the judgment is a win not just for me, but for the integrity of our financial system and the rule of law in South Africa.
Former Absa board member Sipho Pityana is bracing for another bruising battle with the bank as well as the South African Reserve Bank (Sarb) in the court of law in his fight for reform in the banking sector.
This comes as Absa and the Sarb's Prudential Authority (PA) both filed applications for leave to appeal the Pretoria High Court ruling last month that vindicated Pityana in his claim that the PA broke the law in interfering with his possible nomination as Absa chair in 2021.
The PA controversially consulted with third parties regarding his suitability for the chairperson role, particularly following inquiries into his resignation from AngloGold Ashanti amid allegations of sexual harassment - claims he firmly denies.
The court found that the PA acted unlawfully by adopting an informal process to review Pityana's nomination, as prescribed by the regulations in place under the Banks Act.
Pityana's legal battle began when he sought a declaratory order against the PA, claiming they had operated outside the legal framework established for such considerations. He did not seek any relief against Absa.
However, Absa said it would take the judgment on review.
'After careful consideration of the 13 June 2025 High Court judgement, Absa will respectfully seek leave to appeal. It should be noted that the Court made no findings against Absa, save to order that it was jointly liable with the Prudential Authority for the applicant's costs,' Absa told Business Report on Monday.
The court's judgment, delivered by Judge Flatela Luleka last month, established that the PA had indeed overstepped its bounds by failing to follow established protocols, thus denying Pityana the opportunity to contest objections to his appointment.
'The [PA] acted unlawfully and in excess of its power per the Banks Act 94 of 1990 by engaging in an informal process with the [Absa Group] and [Absa Bank] in connection with the nomination of [Pityana] as chairperson of the [Absa Group] and [Absa Bank's] board of directors, and in particular by notifying the [Absa Group] and [Absa Bank] of its objection, alternative intention to object to [Pityana's] nomination,' read the judgment.
PA spokesperson, Thoraya Pandy, also confirmed on Monday that the PA is going back to court on the matter.
'Yes you are right, we have lodged an appeal. The documents are in the public domain and you can reach out to the courts for it, as we do not share it directly to anyone,' Panday said.
Speaking with Business Report last month, Pityana said the case had raised serious concerns regarding the independence of the Sarb and also urged for a formal investigation into what he describes as "cosy relationships" between key figures in the banking sector.
He said the judgement raised a number of new questions in terms of transparency, good governance and ethical conduct in the financial sector's regulatory environment, as well as accountability when laws are broken.
On Monday, Pityana said there was nothing really surprising about these applications for leave to appeal.
'The more curious one is why Absa is appealing the judgement when no finding is made against them. Indeed, why are they spending so much resources on a case in which they are cited only as an interested party. It already speaks to collusive behaviour,' Pityana said.
Pityana's legal battle extends beyond this ruling; he is also contesting his removal from the Absa board through separate legal proceedings.
BUSINESS REPORT