Latest news with #SiphoPityana
IOL News
14-07-2025
- Business
- IOL News
Pityana prepares for another legal showdown with Absa and SA Reserve Bank
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
IOL News
26-06-2025
- Business
- IOL News
Sipho Pityana calls for investigation into SA Reserve Bank's independence after Absa debacle
Former Absa board member Sipho Pityana has raised serious concerns regarding the independence of the South African Reserve Bank (Sarb) Image: Itumeleng English/Independent Newspapers Former Absa board member Sipho Pityana has raised serious concerns regarding the independence of the South African Reserve Bank (Sarb), urging for a formal investigation into what he describes as "cosy relationships" between key figures in the banking sector. Pityana's remarks come on the heels of a Pretoria High Court ruling that has cast doubt on the conduct of Sarb's Prudential Authority (PA) during his controversial nomination process as chair of Absa Bank in 2021. 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. This ruling not only vindicated Pityana but also brought to light the opaque interactions between the regulatory body and external parties. 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. 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. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading The court's judgment, delivered by Judge Flatela Luleka, 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. Speaking exclusively to Business Report on Wednesday at his office in Johannesburg, Pityana said the court ruling was a reminder to all, especially those in powerful positions, that they cannot disregard the rule of law. 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. 'I think that this is a case where the Reserve Bank has revealed itself to be capable of being manipulated by an outside person, that Maria Ramos was. And this stems from widely known relationships between her and maybe her family with the Reserve Bank leadership and or the National Treasury leadership, because it's basically her pushing this,' Pityana said. 'So we have a leadership in the governors of the Reserve Bank who are capable of being ordered around by Maria Ramos. This thing happened not because the governors of the Reserve Bank didn't know what the Banks Act says about these processes. They crafted a different procedure in order to make good to Maria Ramos' desires. 'What does accountability look like when a leadership of the Reserve Bank entrusted with an independent and powerful institution that the Reserve Bank is has been found to have failed to act without favour or prejudice? So this thing about the independence of the Reserve Bank is a weighty matter.' Ramos, now serving as chair of Standard Chartered, has not responded to requests for comment following the judgment. Meanwhile, the PA has signalled that it is currently reviewing the judgment before issuing a formal statement. 'The PA is studying the judgement and will comment on the matter at an appropriate time,' said PA spokesperson, Thoraya Pandy. Pityana said what was concerning was the fact that the regulator's excesses may have compromised its pivotal role as a trusted custodian of the integrity of the financial services sector. He said he had taken the Herculean task of taking the PA to court as a matter of principle because of the injustice meted out to him and also because board members should not be anyone's lackey as independent directors. The former Absa director further articulated the personal toll the legal battle has exacted on him and his family, acknowledging the Herculean nature of challenging a powerful institution. 'But it's not something I'm prepared to allow to shape my destiny, to be a preoccupation for me. I'm not pursuing Maria, that would be small. The big thing for me is that our leadership wakes up to the fact that you can't give the Reserve Bank a blank check,' Pityana said. 'There are too many of these instances about the Reserve Bank and its transgressions that, surprisingly for me, have not gotten the Minister of Finance, but importantly, Parliament's relevant structures to actually prove and find out what the hell is going on with the Reserve Bank.' Pityana's legal battle extends beyond this ruling; he is also contesting his removal from the Absa board through separate legal proceedings. 'A court of law has decided that, indeed, the conduct of the Reserve Bank was unlawful. If the Reserve Bank is found to have acted unlawfully, it would mean we as the board of Absa also acted unlawfully. That's the reality,' Pityana said. 'The moment now for the pig to fry in its own fat. This is their logic.' In response to Business Report, Absa also said it was studying the judgment.
IOL News
23-06-2025
- Business
- IOL News
Pityana's calls for increased scrutiny of banking regulator's powers
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. Image: Simphiwe Mbokazi/Independent Newspapers BUSINESS leader Sipho Pityana has described the SA Reserve Bank's (Sarb's) Prudential Authority (PA) as a rogue institution that places itself above the law. Pityana recently secured a major victory against the PA when it was found that it had unlawfully blocked his appointment to the Absa board. 'What was the basis for their objection? They never said I was unfit,' Pityana said. 'The Reserve Bank first indicated they had issues with my nomination by suggesting I may not be a 'fit and proper person' — without ever formally asserting that I was implicated in harassment or any misconduct,' Pityana said. 'In fact, in all the court papers, they stated that they never asserted I was unfit or unqualified. They never actually said I wasn't a fit and proper person.' The PA acted without legal justification, relying instead on informal, 'backroom processes' to strong-arm the Absa Board into rejecting Pityana. The PA had firmly defended its legality and conduct amid debates over its role in the appointment of bank executives. Central to its arguments was that it had not acted unlawfully or beyond its powers under the Banks Act. In court filings, the PA stated: 'The Authority always acted lawfully,' affirming that its interactions with banks were in line with regulatory standards. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Regarding the nomination process itself, the PA highlighted its statutory authority to review and potentially object to candidate appointments. It said: 'Section 60(5) of the Banks Act read with Regulation 42(1)(a) of the Regulations and section 60(5)(b) of the Banks Act provide that the notice must reach the Authority at least 30 days before the proposed date of appointment,' and that 'the Authority may object to the proposed appointment by means of a written notice, stating the grounds for objection.' The PA further argued that its oversight included providing early guidance to banks. 'Financial institutions often engage with the Authority in advance of any nomination of directors or senior executives. They seek early guidance regarding any fitness or proprietary concerns,' it said, underlining that these interactions were part of the regulatory process and were intended 'to facilitate compliance with the statutory requirements by banks'. In her judgment, Judge Luleka Flatela underscored that the PA's actions went beyond these prescribed procedures. 'The First Respondent acted unlawfully and in excess of its powers per the Banks Act 94 of 1990 by engaging in an informal process with the Second and Third Respondents in connection with the nomination of the Applicant as Chairperson of the Second and Third Respondents' board of directors, and in particular by notifying the Second and Third Respondents of its objection, alternative intention to object to the Applicant's nomination.' Pityana did not mince words when describing the PA's conduct: 'They knew the process they were following was unlawful. Everything they submitted in court suggested they understood the unlawfulness of their actions but looked for excuses to justify using the informal process.'
IOL News
18-06-2025
- Business
- IOL News
Pretoria High Court rules Sarb, PA acted unlawfully in blocking Sipho Pityana's Absa chair appointment
A recent ruling by the Pretoria High Court has upheld Sipho Pityana's challenge against the South African Reserve Bank, raising critical questions about the legitimacy of regulatory practices and corporate governance in South Africa Image: File The Pretoria High Court determined that the South African Reserve Bank (Sarb) and its Prudential Authority (PA) acted outside the bounds of the law in their objections to Sipho Pityana's appointment as chair of Absa Bank in 2021. Pityana sought a declaratory order asserting that Sarb's conduct was unlawful, arguing that their informal interventions breached established legal protocols. According to the legal papers served to the PA, the authority halted his chairmanship bid by conducting an informal process that involved consultation with third parties, including former Absa CEO Maria Ramos, to assess his suitability for the role. The PA's concerns emerged after Absa's succession committee identified Pityana as the sole candidate to succeed Wendy Lucas Bull, who was set to resign in March 2022. In an unexpected move, Absa ultimately appointed Sello Moloko as chairperson instead. This situation escalated as discussions regarding Pityana's appointment took place outside the formal procedures laid out in the Banks Act, raising serious questions about adherence to the guidelines governing banking appointments. Having joined the Absa board in 2019 and elevated to lead independent director by June 2020, Pityana's career faced a turbulent shift following his resignation from AngloGold Ashanti in December 2020 amidst allegations of sexual harassment, which he has adamantly denied. This earlier controversy resurfaced when Absa dismissed him from its board, claiming he breached his duties as a director by filing suit against the PA. In 2021, the Absa Group and Absa Bank Boards removed Pityana from their ranks, stripping him of his position as lead independent director and chair of the remuneration committee. Judge Flatela Luleka, in a compelling judgement, emphasised that there was no credible evidence countering Pityana's claim of being in line for the chairperson role at Absa. 'I conclude that [Pityana] was poised to be nominated for the chairperson position of Absa. There does not appear to be any credible evidence before me to gainsay this position,' Judge Luleka stated. Furthermore, the judge acknowledged that the matter raised significant legal issues of public importance, necessitating the court's adjudication. 'The relief sought by the applicant is justified,' he pronounced. Neither Sarb nor the PA were available for comment following the ruling, and attempts to reach Pityana went unanswered. Pityana's legal struggle, however, extends beyond this recent decision; he is also contesting his removal from the Absa board through separate legal avenues. He contends that the result of his current application could set important precedents for governance and illuminate the relationship between the PA and banking institutions in South Africa. In concluding the matter, the court affirmed its status as one of public significance, with potential implications for future governance structures—a reminder of the tightrope that regulatory bodies must walk in overseeing corporate leadership. This article was originally published in Business Report IOL
IOL News
18-06-2025
- Business
- IOL News
Pretoria High Court rules Sarb, PA acted unlawfully in blocking Sipho Pityana's Absa chair appointment
A recent ruling by the Pretoria High Court has upheld Sipho Pityana's challenge against the South African Reserve Bank, raising critical questions about the legitimacy of regulatory practices and corporate governance in South Africa Image: File The Pretoria High Court determined that the South African Reserve Bank (Sarb) and its Prudential Authority (PA) acted outside the bounds of the law in their objections to Sipho Pityana's appointment as chair of Absa Bank in 2021. Pityana sought a declaratory order asserting that Sarb's conduct was unlawful, arguing that their informal interventions breached established legal protocols. According to the legal papers served to the PA, the authority halted his chairmanship bid by conducting an informal process that involved consultation with third parties, including former Absa CEO Maria Ramos, to assess his suitability for the role. The PA's concerns emerged after Absa's succession committee identified Pityana as the sole candidate to succeed Wendy Lucas Bull, who was set to resign in March 2022. In an unexpected move, Absa ultimately appointed Sello Moloko as chairperson instead. This situation escalated as discussions regarding Pityana's appointment took place outside the formal procedures laid out in the Banks Act, raising serious questions about adherence to the guidelines governing banking appointments. Having joined the Absa board in 2019 and elevated to lead independent director by June 2020, Pityana's career faced a turbulent shift following his resignation from AngloGold Ashanti in December 2020 amidst allegations of sexual harassment, which he has adamantly denied. This earlier controversy resurfaced when Absa dismissed him from its board, claiming he breached his duties as a director by filing suit against the PA. In 2021, the Absa Group and Absa Bank Boards removed Pityana from their ranks, stripping him of his position as lead independent director and chair of the remuneration committee. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Judge Flatela Luleka, in a compelling judgement, emphasised that there was no credible evidence countering Pityana's claim of being in line for the chairperson role at Absa. 'I conclude that [Pityana] was poised to be nominated for the chairperson position of Absa. There does not appear to be any credible evidence before me to gainsay this position,' Judge Luleka stated. Furthermore, the judge acknowledged that the matter raised significant legal issues of public importance, necessitating the court's adjudication. 'The relief sought by the applicant is justified,' he pronounced. Neither Sarb nor the PA were available for comment following the ruling, and attempts to reach Pityana went unanswered. Pityana's legal struggle, however, extends beyond this recent decision; he is also contesting his removal from the Absa board through separate legal avenues. He contends that the result of his current application could set important precedents for governance and illuminate the relationship between the PA and banking institutions in South Africa. In concluding the matter, the court affirmed its status as one of public significance, with potential implications for future governance structures—a reminder of the tightrope that regulatory bodies must walk in overseeing corporate leadership. This article was originally published in Business Report IOL
