By Staff Reporter
Harare – BancABC is embroiled in a controversy, facing accusations of concocting charges against at least nine top executives to avoid paying substantial retrenchment packages.
According to sources, the bank’s current Managing Director, Tawanda Munaiwa, is spearheading a controversial restructuring process that involves fabricating offenses to terminate contracts of senior managers.
This move, insiders allege, is designed to circumvent the payment of significant severance packages.
A series of suspensions and dismissals has targeted key positions, including Head of Treasury, Head of Human Capital, Head of Marketing, Head of Corporate Banking, Head of Digital Transformations, and Head of Operations.
Additionally, the Head of Finance was forced to resign, and twelve other employees were charged with various offenses.
Legal representatives for one of the affected employees have challenged the validity of the charges, describing them as “vindictive” and “a clear storm in a teacup.”
“What is clear was that there were unprecedented disciplinary processes most which resulted in dismissal.
“The employee and indeed other employees who fell victim believe that this was an issue of trying to get rid of employees without paying retrenchments,” lawyers representing one of the victims said in their submissions during their client’s hearing.
“Right from the beginning, we would like to categorically state that the charges are vindictive and a clear storm in the tea cup and are accordingly denied.
“On the main, the facts which have been twisted and turned to constitute laughable ‘misconduct charges’ are not new. They have been in the domain of the bank since their existence.
The lawyers argue that the bank is attempting to avoid paying a combined exit package of over US$6 million.
“What is clear is your organisation does not want to pay an appropriate severance to a man who has served for years,” the lawyers’ submissions read in part.
“Furthermore, as an honest citizen and law-abiding person, our client reserves the right to bring to the attention of the regulatory authorities certain extremely ugly practices which the organisation is currently doing.”
The bank’s engagement of a private lawyer to handle these cases, despite having its own legal team, raises further questions about its intentions.
The lawyer has reportedly been paid over US$235,000 to pursue a range of allegations against the dismissed managers, including failure to exercise due diligence, nepotism, conflicts of interest, and loan irregularities.
Insiders point to the discrepancy between the treatment of employees in Zimbabwe and those in other African countries where BancABC has operated.
The bank reportedly paid full terminal benefits to employees in Nigeria, Rwanda, Tanzania, Zambia, and Mozambique after selling its subsidiaries in those countries, but is now resorting to questionable tactics to avoid similar obligations in Zimbabwe.
BancABC spokesperson Patience Musa did not respond to requests for comment on these allegations.
As the hearings continue, the bank’s reputation and its commitment to fair labor practices are under scrutiny.
