KEY POINTS
- BancABC severance dispute involves top executives facing misconduct charges.
- Suspended managers allege charges are meant to avoid severance payments.
- Legal representatives claim the bank’s disciplinary process is dubious.
BancABC is embroiled in controversy, facing accusations of fabricating misconduct charges against nine of its top managers in a bid to avoid paying severance packages. Documents obtained by NewZimbabwe.com reveal that the bank engaged a private lawyer to expedite its efforts to dismiss these employees while sidestepping retrenchment payments.
Suspended executives allege targeted dismissals
The bank’s Head of Treasury, Head of Human Capital, Head of Marketing, Head of Corporate Banking, Head of Digital Transformations, and Head of Operations were all suspended earlier this year. Additionally, the Head of Finance was forced to resign, and twelve other employees faced charges related to various alleged misconducts.
NewZimbabwe recorded that lawyers representing one of the dismissed executives argued that the charges were part of a deliberate strategy to terminate employment without severance. “These unprecedented disciplinary processes mostly resulted in dismissals. It is clear that the intention is to avoid paying retrenchments,” the lawyers stated during a hearing.
The legal representatives dismissed the charges as “vindictive” and “a storm in a teacup,” claiming the accusations had been exaggerated to justify dismissals.
Allegations of misconduct and bank’s motives questioned
The affected employees were each charged with bespoke allegations, ranging from failure to exercise due diligence to nepotism and conflicts of interest. However, the dismissed executives argue that these charges have been longstanding issues within the bank and were only used now as a pretext for their removal.
“Our client reserves the right to bring to the attention of regulatory authorities the extremely ugly practices the organisation is currently involved in,” the lawyers noted.
The bank, according to insiders, is attempting to avoid paying a combined severance package amounting to over US$6 million. Sources also revealed that BancABC paid a prominent lawyer over US$235,000 to handle the dismissals and the accompanying legal cases.
Bank’s actions raise concerns over fairness
Employees have raised questions about BancABC’s recent actions, particularly why full severance packages were paid to employees in other countries like Nigeria, Rwanda, and Zambia, while in Zimbabwe, the institution has resorted to using internal hearings with questionable outcomes.
“These actions show dubious intent,” said a disgruntled employee. “It’s clear the bank is using kangaroo courts with predetermined outcomes to avoid paying what is owed to employees.”
The hearings regarding these dismissals are ongoing.
