26 November 2008
editorial
Johannesburg — THE South African banking sector is a small pond in the global context, and there are relatively few fish big enough and with the complex blend of skills and experience required to be successful bank CEOs.
Given the country's divided past, candidates need to enjoy credibility not only with the corporate customer base but also the political elite, a combination that makes it almost inevitable that conflicts of interest will arise.
The row over Transnet CEO and former treasury director-general Maria Ramos's appointment as Absa CEO must be seen in this light. Ramos's CV is impressive and her competence proven, so the Absa board's desire to bring her on board is understandable. But it is right that questions are being asked about the implications of her long-standing allegiance to the ruling party and "life partnership" with Finance Minister Trevor Manuel.
These issues must be discussed openly, rather than be swept under the carpet, even if they cannot be resolved to everyone's satisfaction. If we shy away from thrashing things out now there is a real risk of them blowing up in future. If the conclusion that is reached is that such conflicts cannot be avoided, for the reasons mentioned above, it is imperative that Chinese walls be erected.
Ramos and Absa chairwoman Gill Marcus may well have gone to Gallagher Estate last week to brief Manuel and President Kgalema Motlanthe on the developments, however unnecessarily elaborate that may seem. However, the fact that the African National Congress's national executive committee was meeting there at the same time is reason enough for legitimate concern over whether the distinction between party and state is being honoured.
ANC secretary-general Gwede Mantashe's bizarre comments on the responsibilities of "disciplined cadres" indicate that he either does not appreciate the potentially serious consequences for both the party and Absa should incorrect perceptions prevail, or he would prefer that the tough questions not be asked at all.
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