Kanyekanye leaves Capital Bank, RTG

HARARE - Controversial businessman Joseph Kanyekanye has stepped down as board chairperson of Rainbow Tourism Group (RTG) and Capital Bank Corporation Limited (Capital Bank).

The move, he said, is meant to pave way for the appointment of independent chairpersons for the two institutions — both majority-owned by the National Social Security Authority (Nssa).

This comes as Kanyekanye was in April suspended by Nssa — but later cleared — over charges including gross irregularities, corporate governance malpractices, and interference in management processes at Capital Bank.

His resignation is on the back of Nssa’s resolution last month that all its members who are chairpersons in companies the pensions authority has interest in must step down.

The Allied Timber Holdings boss sits on Nssa’s board as well as up to 10 other companies.

“I will, however, remain sitting on the boards (RTG and Capital Bank),” Kanyekanye said on Tuesday.

“We have basically done two things. For RTG, John Chikura is taking over starting tomorrow whilst at Capital Bank’s Oscar Machiridza will take over as chairperson,” he said, adding that the appointments were still subject to other shareholders’ approval.

Kanyekanye represented Nssa, which holds 87 percent shareholding in Capital Bank and over 50 percent directly and indirectly in RTG.

He claimed that during his  tenure as RTG’s chairman, he successfully managed the reconstitution of RTG’s board and management changes.

“From a Nssa perspective the things we wanted to do in RTG have been done,” said Kanyekanye.

“We also successfully raised $14,5 million which was channelled towards restructuring and retiring short-term debt respectively.

“A strategic plan is already underway and some of the decisions we made are beginning to bear fruit,” he said.

The outgoing RTG chairperson added that the hospitality group was preparing to open up the Beitbridge hotel which is currently the largest civil construction project.

He noted that “part of the problems which happen when you sit on the major shareholder’s board and the company’s board is that when I am at Nssa I will be the boss to the authority’s chief executive.”

“When you go to the hotel you have that anomaly. Good corporate governance indicates that an independent person be the chair of the board. We used to have serious problems in RTG but in the last Annual General Meeting all the resolutions were passed and we are happy that sanity is now prevailing,” Kanyekanye said.

With regards to Capital Bank, Kanyekanye highlighted that Nssa had approved the turnaround and recapitalisation strategy of the financial institution, but “was left to deal with incorrect implementation of the total costs of remuneration and restore independence of the board.”

Kanyekanye said the criminal cases filed against some of Capital Bank’s directors were still pending before the courts.

“Those cases are still there and there has not been sufficient movement. Our role is to stipulate what was wrong and the authorities deal with that,” he said.

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