The turbulence surrounding the departure of African Bank CEO Kennedy Bungane, the third under board chair Thabo Dloti, has raised questions about goings-on in the lender’s boardroom.
The bank has named Zweli Manyathi, head of the business and commercial banking unit, as interim CEO. Though he is a veteran of retail and business banking, Manyathi will be 65 in September — the bank’s retirement age, which means it may well have a fifth boss before the end of the year.
Still, the bank said it has a clear succession plan. “A core part of the board’s mandate is to ensure that a robust succession plan exists to ensure the approved strategy and objectives are executed, whilst our governance protocols are fully adhered to,” it said in a statement.
It added that the board remains confident in the existing leadership talent development process and that its succession plans will always ensure seamless succession and transition, with a leadership team that will deliver to stakeholders’ expectations and sustain African Bank.
While those sympathetic to Dloti say he needed to act against Bungane after the bank reported poor first-quarter results and Bungane oversaw a regulatory reporting error to the Prudential Authority, Bungane’s supporters say that micro-management of senior staff is behind the executive departures.
Bungane, previously head of corporate and investment banking at Standard Bank South Africa, resigned with immediate effect last Friday after five years at the helm.
Where the board has encountered issues of noncompliance, it is incumbent on the board to act swiftly, which is what it has done in the past, is being done now and will be done going forward — and to which it remains committed
— African Bank
His predecessor, Basani Maluleke, who joined the bank in 2018, quit in 2021 after professional differences with the Dloti-led board. Maluleke now serves as group executive at Capitec’s personal banking division. Gustav Raubenheimer became interim CEO in 2021 after Maluleke’s departure and was previously head of credit.
A source said Dloti was “a trigger-happy chair who did this to Basani and now to Bungane”. But the bank hit back, saying it and Dloti had a fiduciary responsibility to stakeholders, including shareholders.
“Where the board has encountered issues of noncompliance, it is incumbent on the board to act swiftly, which is what it has done in the past, is being done now and will be done going forward — and to which it remains committed,” the bank said in a statement.
Bungane, who has declined to comment on his departure, has been credited for transforming African Bank from a micro-lender into a diversified banking group with the acquisition of several assets, including Grindrod and Sasfin’s capital equipment finance and commercial property finance loan books.
Part of his strategy, dubbed Excelerate, envisioned listing the bank in 2025, but that was postponed to 2028, depending on market conditions and the bank’s performance.
Business Times understands personal banking CEO Sibongiseni Ngundze was also axed earlier this year after losses in the retail business. According to sources, Ngundze left after the group “dropped the ball” with collections in the personal lending business.
Ngundze declined to comment on the matter and referred questions to the bank.
Group chief people officer Gcobisa Ntshona and Unathi Mtya, the group information and digital officer, also left the bank last year before the latest spate of departures.
The bank’s directors’ affairs and governance committee on Friday denied there had been impropriety at the bank, but conceded that some matters had been handed over to “authorities” for further investigation.
The committee said the issues raised by Business Times were confidential matters between the said employees and the bank, and were issues that the bank had either dealt with or was in the process of managing.
“Being a regulated entity, the bank has a responsibility to report findings on all material issues to the relevant authority, including the Prudential Authority, as and when they are identified, investigated and resolved,” it said.
The lender was placed under curatorship in 2014 when its parent, African Bank Investments Ltd, collapsed under the weight of a huge loan book and rising bad debt. It was rehabilitated in 2019
Approached for a response, the Prudential Authority said it did not comment on individual companies.
African Bank said some of the matters raised by Business Times had been dealt with in compliance with the bank’s governance and all laws and regulations, and where appropriate these had been escalated to the relevant authorities.
“This demonstrates the speed and agility with which the board and management respond to occurrences of noncompliance. Such occurrences are detected thanks to our robust internal controls and compliance protocols and processes, which is testament to the strength and efficacy of our governance structures, systems and reporting lines,” it said.
The board has always taken decisions that are in the best interests of the bank and ensure the organisation remains sustainable and profitable, it added.
African Bank, which turned 50 in 2025, is owned by a consortium of shareholders. The South African Reserve Bank has a 50% stake and the Government Employees Pension Fund 25%. The remaining 25% has been owned by the country’s main banks, including Absa, Nedbank, Standard Bank, FirstRand and Investec, since 2016.
The lender was placed under curatorship in 2014 when its parent, African Bank Investments Ltd, collapsed under the weight of a huge loan book and rising bad debt. It was rehabilitated in 2019.
The bank on Friday assured all of African Bank’s stakeholders that the management team was supportive and fully behind the steps that had been adopted as the bank moved into this phase of consolidation and would ensure ongoing optimal performance by going back to basics.
“African Bank’s leadership is focused on executing the strategy to consolidate the gains made in the expansive phase of the Excelerate strategy,” it said.
“The special focus is on delivering tangible bottom-line results, extracting synergistic value from acquired entities and capabilities and preserving capital to support the fast-growing elements of the bank as we embed people, systems and processes in a fast-changing bank.”
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.