Several reports from yesterday (deleted but the internet doesn’t forget) say that Kwanele Ngwenya, CEO of Econet owned financial institution, Steward Bank, has been forced out. The bank itself confirmed Ngwenya’s leaving in a statement but said he isn’t being let go. He’s chosen not to renew his contract is what they say.
On why he’s being forced out, the media so far says there are some corporate governance issues at play. We made our own calls to sources inside the company and the group as a whole and the picture we’re getting is that there’s minimal sign of corporate governance issues there. Maybe politics more, but that’s a topic for a story we’ll post later.
Kwanele Ngwenya is leaving at the end of this month, after a two year contract with the bank that started at the beginning of 2013, soon after the Econet acquired TN Bank. Kwanele, who had come from FNB Botswana was apparently mandated to clean up a bank that had many issues and irregularities. So far, the performance of the bank indicates he did a good job at this managing to improve the bank’s financial position significantly – USD $3.7 million loss in the half year ending August 2014 compared to a USD $22 million in the same period the year before.
It’s not clear yet who is going to replace him. Also not clear if Ngwenya is leaving to pick up another another job somewhere. More later.