Follows a high court ruling that the Prudential Authority broke the law in interfering with his possible appointment as Absa chair in 2021. From Moneyweb.
Absa and the South African Reserve Bank’s Prudential Authority (PA) have given notice that they intend to appeal the Pretoria High Court ruling in June that the PA had exceeded its powers in raising objections to the appointment of Sipho Pityana as chair of Absa in 2021.
“After careful consideration of the 13 June 2025 High Court [judgment], 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,” says Absa in a statement.
Read:
Reserve Bank unlawfully interfered in Absa chair appointment, says court
Absa and Pityana both see victory in court decision
Pityana goes to court to challenge his removal from the Absa board
Absa removed me unlawfully from the board – Pityana
The PA has said it will likewise appeal the ruling.
Pityana was tipped as the preferred candidate to take over as chair of Absa from outgoing chair Wendy Lucas-Bull, but was withdrawn from the list after the PA’s deputy governor Kuben Naidoo approached former Absa chair Maria Ramos to enquire into the circumstances of Pityana’s resignation from AngloGold Ashanti.
Pityana was formerly chair at AngloGold Ashanti, where he faced accusations of sexual harassment – claims that he has steadfastly denied.
‘Comment or caution’
Ramos asked Naidoo to make a formal written request which would then be passed on to AngloGold Ashanti’s legal team.
Naidoo suggested that Absa share its shortlist of candidates for the position of chair so the PA could “comment or caution” before the bank went too far with its selection process.
He then called Lucas-Bull to advise her that the PA had concerns over the manner in which Pityana resigned from AngloGold Ashanti. He urged Absa to thoroughly investigate the matter.
Pityana was appointed to the Absa board in 2019 and became lead independent director in June 2020.
Absa withdrew Pityana’s name for nomination as chair in 2021, fearing reputational fallout.
Pityana took the matter to court seeking a declaratory order that the PA had acted outside the law by adopting an informal process that condemned him as an unfit and improper person to hold the position of chair. That, he argued, denied him a fair hearing in the matter.
This informal process was not in accordance with the processes outlined in the Banks Act requiring banks to inform the PA about the nomination of individuals to key positions.
‘Discrete legal issue’
“I am of the view that this matter raises a discrete legal issue of public importance that would affect matters in the future and requires the adjudication of this court, notwithstanding the mootness of the issues between the parties,” reads the Pretoria High Court ruling by Judge Luleka Flatela.
“The relief sought by the applicant [Pityana] is justified.”
Responding to Moneyweb, Pityana says his legal team is satisfied that the Pretoria High Court is well founded in the facts and in law.
“I asked the court for a declaratory order that the PA acted unlawfully in the manner they handled this [Pityana’s nomination] and by-passed the Banks Act by adopting an informal process.
“I did this in the public interest, not because I want to be returned to the Absa board,” says Pityana.
“The public interest here is there’s a good reason why legislators did not give the PA a blank cheque to opt out of following correct procedures when it comes to nominations of this kind.
“When dealing with other nominations in other financial services, they may believe they may have the option of not following the law.
“That’s a dangerous precedent for SA.”
‘Investigate the Reserve Bank’s independence’
Pityana says it is time for parliament to investigate the Reserve Bank’s independence.
“The PA based its position on what Maria Ramos was telling it,” says Pityana.
“You rely on the word of one person and one person only, whose relationship with the governors or the Reserve bank is undeniable.
“Banks can close your accounts. The Reserve Bank issues directives which must be followed. The integrity of good governance, the Reserve Bank’s independence must not be tampered with and parliament must call the governor to account.”
