Investigation at major South African bank finds serious misconduct

An independent investigation found evidence of serious misconduct at Absa, including the leaking of confidential company information.

Absa, one of South Africa’s largest banks, has confirmed to Daily Investor that it commissioned an independent investigation into the alleged misconduct. 

The bank explained that, to ensure its impartiality, the investigation was conducted by an independent third-party forensic firm, ENS Forensics.

“The investigation has concluded that there is prima facie evidence of serious misconduct, which will be presented in a formal disciplinary enquiry in accordance with proper protocols and procedures, including being chaired by an independent senior counsel,” Absa said.

News24 reported that these allegations came to light after certain Absa staff members allegedly leaked information that may have led to the departure of the bank’s former CEO, Arrie Rautenbach.

Absa clarified to Daily Investor that none of the bank’s established whistleblower channels were used in this matter.

In addition, the employees involved did not identify themselves as whistleblowers or indicate they were making protected disclosures as defined by the Protected Disclosures Act or Absa’s policy.

The bank said this is despite the employees having had the opportunity to do so. “Absa is firmly committed to upholding our whistleblower policy,” the bank said. 

“We value the critical importance of whistleblowers in maintaining organisational integrity and have robust protections in place for any individual who comes forward with legitimate concerns.”

“Our employees have access to multiple secure channels through which they can report issues confidentially or completely anonymously, including an independently managed external facility operated by one of the Big Four audit firms to ensure impartiality and trust.”

The bank further explained that, as these matters now proceed through formal internal disciplinary channels, it is bound by a commitment to strict confidentiality. 

Absa said this is essential to protecting the integrity of its disciplinary process, ensuring procedural fairness for all parties involved, and safeguarding the privacy rights of its employees.

“We will therefore not be providing additional commentary on the specifics of this case,” the bank said.

Absa’s revolving door

After Rautenbach’s departure in August 2024, he was replaced by interim CEO Charles Russon, who became the sixth interim and permanent CEO Absa has had over the past six years.

In August last year, the bank revealed that Rautenbach would take early retirement following engagements between the board and its CEO. 

Prior to the announcement, the Sunday Times reported that Rautenbach’s job was on the line as the bank was challenged with the “slow pace of transformation, governance lapses and human resource blunders”.

He reportedly met with the bank’s top leadership to garner support, but the meeting did not go as planned.

Some leaders told him they “had lost all confidence in him and wanted a new CEO, while others said they wanted a black African CEO”, the publication reported.

“The general view was that he is weak commercially, and the company has performed poorly under his stewardship.”

Rautenbach was succeeded by Charles Russon, who assumed the role of interim CEO from October 2024 until a replacement was found.

This made Russon Absa’s sixth CEO since 2019, which, to many, indicated severe instability within the bank’s leadership.

One of Absa’s longest-serving CEOs, Maria Ramos, was at the helm for 10 years. After her departure in 2019, the top position at Absa became a revolving door – the CEOs who followed her all served terms of less than three years.

Now, Absa is looking to turn this around with its latest permanent CEO appointment, Kenny Fihla, who previously served as Standard Bank’s deputy CEO.

Absa informed shareholders in March this year that Fihla has been appointed CEO and executive director of Absa Group and Absa Bank, effective 17 June 2025.

The bank also recently announced that its chairman, Sello Moloko, will step down from his position later this year and be succeeded by René van Wyk.

Absa said Moloko will step down as chairman and an independent non-executive director effective 15 July 2025 to focus on his business interests and community commitments.