Absa Bank has launched what has been described as a witch-hunt to smoke out those who leaked confidential information about Arrie Rautenbach, former Absa Group CEO, to “persons unknown”. The Sunday Times led the way in reporting on this information.
Rautenbach took premature retirement late last year in the wake of a compliance scandal in terms of which Absa paid former chief executive: everyday banking Cowyk Fox a salary without social security contributions after he had become an American citizen.
Rautenbach was also criticised for trying to remove Saviour Chibiya, the head of the bank's Africa operations, while not taking action against senior white executives who had underperformed.
While sources this week said the hunt for whistleblowers was compromised by a lack of hard evidence against anyone, the bank insisted it had established “prima facie” misconduct by some of its employees in a report by ENS Forensics — “legal experts in fraud, corruption and cybercrime investigations in Africa”.
Sunday Times editor Makhudu Sefara inquired if the name of the publication or its employees are mentioned in the report or its findings, since the newspaper took the lead in reporting on Rautenbach’s infractions. Absa managing executive Daniel Munslow said that the ENS report “does not make any findings in relation to the Sunday Times or any of its employees and, in so far as the name of the paper may or may not be mentioned in the report in the context of the media reporting about Absa during a certain period of time, this ... is completely incidental”.
A lawyer representing some of the employees subjected to hearings told the Sunday Times that the charges showed information was leaked to “persons unknown to Absa”. Sources at Absa have criticised the bank, saying that instead of focusing on how and why the bank’s ecosystem allowed Rautenbach to put it at risk by engaging in activities that led to his early retirement, Absa was misdirecting itself to finding people who exposed things that were wrong within the bank.
“The investigation was done and its outcome is that it is inconclusive. There is no evidence about who leaked what, when, using what method. In other words, was the leaked information e-mailed, sent through using third parties, or handed over directly, to who or how exactly it happened. That couldn’t be established. Yet, because the leak forced the most senior employee to leave prematurely, there must be concomitant consequences,” said the source.
Another source said: “So the process that has followed is laden with violation of rights like denying suspected colleagues access to a report that accuses them, even if indirectly. This process is a sham, a witch-hunt. It’s akin to a medieval inquisition if you know how they find people guilty on Game of Thrones, and yet this is a listed company we are talking about. It’s clear to some of us that Absa has decided to fire those they suspect, even if the evidence is thin, knowing the matter is likely to be overturned in the courts.”
The investigation, conducted by ENS Forensics, has concluded that there is prima facie evidence of serious misconduct, which will be presented in a formal disciplinary inquiry in accordance with proper protocols and procedures including being chaired by an independent senior counsel
— Carli Cooke, Absa spokesperson
But Absa spokesperson Carli Cooke said the bank had conducted an independent investigation into serious misconduct, including the leaking of confidential company information.
“As a result, the implicated employees agreed to take a leave of absence as part of the standard procedural requirement. The investigation, conducted by ENS Forensics, has concluded that there is prima facie evidence of serious misconduct, which will be presented in a formal disciplinary inquiry in accordance with proper protocols and procedures including being chaired by an independent senior counsel,” Cooke said.
Another source said Rautenbach’s replacement, Kenny Fihla, told a meeting of senior managers recently that he was concerned about leaks and pleaded with them to use protected disclosures or approach him if concerned about issues involving the bank.
When contacted for comment, Absa said it was “not in a position to discuss contents of an internal senior leadership group meeting”. The company cautioned against relying on anonymous sources, indicating these could distract or influence the outcome of disciplinary processes under way.
“Not all of the information provided in the query is correct or accurately represented, including race-based allegations and representation of [Fihla’s] remarks.”
Absa said there was no tinge of race in its “evidence-led, independent and procedurally-sound” probe.
“We maintain a zero-tolerance approach towards any discriminatory behaviour within our organisation. Equally we have no tolerance for misconduct or governance breaches irrespective of race or seniority,” Absa said, noting that none of its “established whistleblower channels were used, and at no point did the employees involved identify themselves as whistleblowers”.
— Additional reporting by Makhudu Sefara
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