Kanyekanye faces chop

HARARE - Capital Bank (Capital) controlling shareholder, the National Social Security Authority (NSSA), is working with the financial institution’s board to remove Joseph Kanyekanye from the company’s board altogether.

The controversial businessman recently resigned from NSSA-owned Rainbow Tourism Group (RTG) and Capital, respectively, as chairman of both boards amid allegations of poor corporate governance at the two institutions.

But amid indications that the State-run pensions administrator and his fellow Capital board members were unhappy with his decision not to leave the bank’s board altogether and remain a non-executive director, they are now working to remove him from this position as well — as soon as possible.

To this end, NSSA has written to Capital advising the financial institution’s board that its directive was for Kanyekanye to leave the bank altogether - and not just as chairman of its board and the Daily News has seen a copy of the letter.

While Kanyekanye told the media last week that he had resigned from both the chairmanships Capital and the hotel group to comply with a NSSA board resolution to have independent leaders at all its investments, he insisted that he would be staying on as an independent non-executive director of both companies.

“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,” he said.

“When you go to the hotel you have that anomaly. Good corporate governance indicates that an independent person be the chair of the board,” Kanyekanye said.

“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,” the Altim Holdings boss said.

A well-placed source said late last week that Kanyekanye had repeatedly and bluntly been told by NSSA to leave Capital, but has, for some reason, been trying to resist this.

“It is most unusual that a board member is told to leave by the shareholder who appointed him in the first place, because of all the problems he has been mired in there, and he (Kanyekanye) still attempts to hang on.

“The reality is that both NSSA and his fellow board members at Capital Bank and RTG are sick to the stomach with his cowboy, bull-in-a-China shop style, as well as his association with reported incidences of poor corporate governance at these operations.

“As a result, they want him out, whether he likes it or not. He is just embarrassing himself by hanging on where he is clearly not wanted by anybody, and it won’t work,” one of the sources said.

Another insider also disputed Kanyekanye’s triumphant announcement to the media last week that he had been exonerated of allegations of poor corporate governance and insider dealings at Capital, including claims of irregularly accessing more than $410 000 in loans.

“All of Kanyekanye’s media utterances are nothing but empty bravado and a vain attempt to spring clean his image in the public domain.

“He knows very well that these issues are very much alive. The investigations continue, including, we understand, by the Reserve Bank.

“This is the reason why he wants to harm Capital Bank’s standing by now falsely and self-righteously alleging that the Capital Bank’s management had awarded themselves unauthorised salaries.

“It’s all intended to deflect attention from him and inflict maximum damage on the bank, its board and senior staff,” the insider said.

Comments (2)

This Kanyekanye is an embarassment not just to the business community, but also the political interests that he is clearly working with. He must hope that they don't drop him the way they are doing Kereke.

Fidelis - 15 July 2013

Gloria Gaynor had a hit in the seventies called, "Never can say goodbye"...Let this serve NSSA well, in future be very careful who you invite to your board. This gentleman does not have sufficient gravitas to sit on any board..his track record at Altim is pathetic to say the least! This was one parastatal which used to post profits year in year out but is shadow now of its former self..pathetic is a word that springs to mind.

gutter poet - 15 July 2013

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