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Sipho Pityana responds to Absa axing
South Africa’s Absa Group earlier today sacked independent director Sipho Pityana from its board after he took the country’s banking regulator to court over a failed attempt to become its chairman. Pityana joins CNBC Africa with his side of the story.
Wed, 24 Nov 2021 15:46:30 GMT
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AI Generated Summary
- The decision by Absa Group to remove Sipho Pityana from its board following a legal dispute with the banking regulator has raised concerns about corporate governance and regulatory oversight in the banking sector.
- Pityana has contested Absa's actions, labeling them as unlawful and a violation of his constitutional rights, highlighting the importance of challenging regulatory decisions to ensure compliance with the law.
- The conflict between Pityana, Absa, and the Reserve Bank reflects broader tensions within the financial industry, underscoring the complexities of balancing corporate interests with regulatory requirements.
South Africa's Absa Group caused a stir today by sacking independent director Sipho Pityana from its board. This decision came after Pityana took the country's banking regulator to court over a failed bid to become the company's chairman. Pityana joined CNBC Africa to share his perspective on the unfolding saga. In an interview with the network, he expressed his disappointment with Absa's decision, calling it "ill-advised, unlawful, and in need of challenge." Pityana emphasized that he had taken legal action against the Reserve Bank, believing it had acted unlawfully, and he had every right to challenge this conduct by law. He stressed that Absa's move was an attack on the rule of law and his constitutional rights, which he intended to contest in court. Pityana highlighted that he will challenge Absa's decision through legal means, as provided for by the company's policies, stating that the move would be reviewed by the courts. He refuted Absa's claims of neglecting his duties as a director, asserting that his actions were aimed at ensuring regulatory compliance and upholding the law. Pityana argued that challenging the Reserve Bank's conduct was in the best interest of Absa and the financial sector, as it served to clarify the legality of the regulator's actions. He rejected the notion that his legal dispute with the regulator indicated a conflict of interest with Absa, emphasizing that it was crucial for courts to pronounce on the lawfulness of regulatory decisions. Responding to suggestions that his actions strained the relationship between Absa and the regulator, Pityana defended his right to challenge decisions through legal channels, citing the framework of the country's legal system. He stressed that directors had the authority to challenge regulatory decisions and that his pursuit of legal recourse should not be construed as a threat to Absa's interests. Pityana underscored the importance of upholding constitutional rights and legal protections, emphasizing the significance of defending these principles. In light of Absa's decision to remove him from the board, Pityana vowed to challenge the move in court and seek justice through the legal system. The unfolding conflict underscores broader tensions within South Africa's banking sector and the delicate balance between regulatory oversight and corporate governance. With Absa's decision sparking controversy and legal action, the repercussions of this dispute are likely to reverberate across the financial industry.
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