BoB blocks Stanchart CEO appointment

Staff Writer | Thursday August 26, 2010 00:00

 

Information reaching Mmegi is that, Leburu, who was early this year appointed deputy CEO at the bank purportedly in preparation to take over from West Indian David Cutting, did not pass the Bank of Botswana's 'proper and fit persons' requirements.

Sources at the two banks say it is puzzling why Bank of Botswana gave Leburu the thumbs up when she was appointed the deputy CEO to undesrstudy the chief executive but now finds it difficult to give her the nod for the plum job.

Previously stanchart did not have a deputy CEO, and insiders say the position was created for her to learn the ropes from Cutting, who was initially supposed to leave by August, but has to now stick around until another replacement is found.

Although Mmegi could not establish the reasons behind the Central Bank's decision, the Banking Act stipulates that such an appointment can only be declined on the basis of either lack of qualification and experience or issues related to corporate governance.

Stanchart officials are tight lipped on the development, saying they are not in a position to discuss Central Bank business.

'We are not going to comment on the Bank of Botswana's decision. However we can confirm Leburu's position as deputy CEO remains unchanged.

'Further, we are not in a position to comment on the timing of Cutting's departure. He remains the Chief Executive Officer until we advise otherwise,' said Stanchart's Head of Corporate Affairs Ithabeleng Letsunyane.

In response to  enquiries from Mmegi, BoB public relations officer Chepete Chepete said, ' the  Central Bank cannot comment on the matter'

Leburu's rise to the helm at the bank would have completed the full circle in the financial sector, with four of the biggest banks being run by Batswana. 

Leburu would have also become not only the first woman, but the first Motswana ever, to head the bank in its 113 years in the country.