Phaswana faces learning curve at Standard Bank
November 16, 2009
By Mzwandile Jacks
Fred Phaswana's lack of banking experience and age came under the spotlight on Friday shortly after he was appointed chairman-elect of Standard Bank.
Derek Cooper, the outgoing chairman of Standard Bank, however, said banking experience had little to do with the appointment of Phaswana, the current chairman of Anglo American South Africa.
Cooper said Phaswana would learn most of the banking technicalities on the job, adding that when he (Cooper) was appointed to Standard Bank board nine years ago, he had little understanding of banking business and its technical side.
Phaswana succeeds Cooper, who has reached retirement age and will step down from the board of Standard Bank after the annual general meeting next May.
"Fred has a good leadership background. He understands business and the role of the board in a company. He also understands the continuity of the company he chairs and understands South Africa and its young democracy," Cooper said.
Cooper said the banking group also had firmly established committees, which Phaswana would be working closely with.
"These structures are already firmly in place and Fred does not need to understand the technical side of the banking business," he said after journalists asked about Phaswana's banking experience.
Phaswana was at the centre of the fight between the suspended chief executive of Transnet Freight Rail, Siyabonga Gama, and his employer, Transnet.
Phaswana, the former Transnet chairman, allegedly wrote a letter earlier this year to former public enterprises minister Brigitte Mabandla, stating that Gama did not qualify for the position of group chief executive at Transnet.
Phaswana retired as chairman of Transnet in August after his term came to an end.
Journalists also raised questions about Phaswana's age, saying this meant that the bank would soon be on the lookout for another chairman after his term comes to an end. They said this could be a setback for the bank in the future.
Cooper said Phaswana, who is 65, would be chairman for five years.
A chairman by law should retire after reaching the age of 70.
"We are delighted to have him at Standard Bank. We will make a decision about his future after five years," Cooper said, adding the board could ask the chairman to stay on even after having reached the age of 70.
Cooper said Phaswana had accepted the offer and that both Saki Macozoma and Kaisheng Yang would continue as joint deputy chairmen of the group.
Phaswana currently chairs Anglo American South Africa, Anglo Platinum and Ethos Private Equity. He serves on the boards of Brimstone Investment Corporation, Naspers Investments and Media24.
Phaswana said he would review his current commitments in the light of his pending chairmanship of Standard Bank.
"In fact, I am going to relinquish all my chairmanships and I will obviously do this in a responsible manner," Phaswana said.
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