Johnson denies leaving Barclays

WANETSHA MOSINYI
Staff Writer | Friday April 11, 2008 00:00

 

'This is a global group and one can be deployed to any Barclays Bank at any time. If it happens it will depend on whether I am able to take the opportunity.

'In the meantime unless I say so or my board says so it remains a speculation. So, rest assured, if I leave I will let you know.'

Johnson was responding to questions from Members of Parliament (MPs) at a breakfast meeting the bank hosted at the Gaborone International Convention Centre (GICC) yesterday.

Speculation about Johnson's departure from the bank started after Barclays lost P73 million as a result of potential fraud perpetuated by Lobtrans through cross flying of cheques between the banks. The Lobtrans saga pulled down Barclays' 2007 year-end profit before tax by 16 percent from P349 million (2006) to P295 million.

On the back of the 940 percent increase in impairment charges to provide for the Lobtrans debt as well as high operational expenses due to a massive retail expansion programme, Barclays has for the first time in recent history experienced a slow-down in profits.

Johnson also revealed that another fraudulent activity against the banks is still under investigation by the Directorate on Corruption and Economic Crime (DCEC).

The case he said was reported to the DCEC after local banks noted that one company has left them holding into one and the same security.

'We hope arrests will be made shortly regarding the case,' he said, adding that from time to time banks are vulnerable from compromise from clients.

Johnson said he believes 2007 results were actually more positive despite the Lobtrans saga as net interest income rose by 30 percent, whilst total income was up 25 percent on the previous year.

Barclays also made significant investments in 2007, opening 14 additional branches to reach a total of 42, and increased ATMs distribution from 45 to 98. Member of Parliament (MP) for Palapye Moiseraele Goya said despite Barclays expanding services, it needs to improve on service delivery. He said queues at the banks and constant malfunction of ATMs remain a common feature in local banks.

Johnson hosted the MPs to brief them on the state of the bank including its retail expansion, localisation programme, its social responsibility programme and its balance sheet for the year ended 2007, and former President Festus Mogae scholarship worth P1.5 million.