Outgoing boss speaks on CBZ exit

Outgoing CBZ Holdings (CBZH) chief executive officer Never Nyemudzo has said he retired from the group “to rest and take care of the children”.

BY TATIRA ZWINOIRA

The group announced yesterday that the banker will be retiring from the group with effect from December 31 after three years at the helm.

Nyemudzo told NewsDay that he retired voluntarily and was not forced out by the CBZH board.

“I wanted to rest. This is a highest speed lane when you are leading such an institution, so you end up thinking of resting. I have been there since 2008, so this is year number 10 at CBZ, so it is not a short time,” he said.

“I am resting and taking care of the children.”

He said his decision to step down had nothing to do with concerns raised by the National Social Security Authority (NSSA) over bad corporate governance practices at CBZH in which the group was paying then board chairman Elliot Mugamu perks commensurate with those paid to executive directors.

This was after it came to light that some CBZH executives were receiving excessive remuneration packages proven by the lavish lifestyles they were leading, while the institution paid paltry dividends to shareholders.

Mugamu was forced out and Noah Matimba took over as the board chairman.

No comment could be obtained from NSSA board chair Robin Vela, who in the past wanted an extraordinary general meeting of shareholders. He did not respond to messages sent on his WhatsApp.

In a statement, CBZH said the group’s banking division managing director Peter Zimunya would be at the helm, in an acting capacity.

“The board acknowledges Never’s leadership and service to the group having joined the group in 2008 as the group finance director and his subsequent appointment as group chief executive officer in 2014,” group legal corporate secretary Rumbidzayi Jakanani said.

Considering CBZH is the biggest financial institution, analysts have questioned the timing of his retirement.

Financial expert Persistence Gwanyanya said it would be interesting to find out the reason behind Nyemudzo’s departure.

“It has got a very significant bearing on the whole financial system given that CBZ Bank is the biggest bank in Zimbabwe, so what will be important to understand are the circumstances around his resignation. If it is something to do with the management of the institution itself, it has greater ramifications on the soundness or health of the financial services sector in Zimbabwe,” he said.
In Nyemudzo’s first year as CEO, back in 2014, CBZH closed the year having a decline in profit after tax of 9,87% to $33,03 million blamed on the economic performance. The following year, CBZH increased its profit after tax by 6,7% to $35,2 million followed by 2016, where it saw a huge 32,5% drop to $28,3 million from the previous year on the back of a decline in net interest income.
At half year ending June, CBZH registered an 0,8% uptick in profit after tax to $11,95 million from the comparable period in 2016.

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11 Comments

  1. Never wepaHippo Valley High School

  2. Maturity is Key

    The shoes were evidently too big for him. Just compare his performance with that of Dr Gono, J. Makuvise and Dr Mangundya. We never had such profit swings before, but let me hasten to register my strong disagreement with your so called financial expert whose advise I think is toxic/poisonous. How can the departure of a single bank’s chief executive affect the whole financial system where there is a fully functional Reserve Bank run tried and tested bankers. Hogwash. Running a big institution like CBZ can and will never be a one man band, I hope this time senior appointments are not going to be done on the basis of perceived strength of some of these accounting qualifications because management is totally different from leadership.

    1. The guy is a CA, you have to look at the Bank’s corporate governance disclosures and financial disclosures. The guy presented a paper at CIS conference in September, i must say that he seems to be upright and incorruptible.

      The decision is definitely political. The sysstem cannot co-exist with upright people.

    2. Nyemudzo is no doubt one of the most intelligent proffessionals Zimbabwe has ever seen. Those who have worked with or under him will attest to this fact.

  3. There is no truth in the whole story, there is a clandestine agenda over this so called voluntary retirement!

    1. Just wish we could get truth from someone for a change!

  4. Something fish.in every country there is one bank favoured by the government and that bank receives cheap funds as most ministries will be depositing money into it and if those funds are not well managed then comes a problem.

    This problem came during Gono times . And Gono took over from Nick Vingirai who had good banking understanding . All these guys inherited from G.G. and again due to our economical situation which is caused by Robert no one is spared from small businesses to big ones. It is unfortunate we in this situation

  5. I guess this guy eventually got tired of all the high profile politicians knocking on his door demanding millions of FX at the expense of other bank clients. I’m sure all these powerful politicians and their runner boys had his mobile number on speed dial and were giving him sleepless nights. At the end of the day, it just wasn’t worth it. Besides, he knows with his solid resume and impeccable track record there will be no shortage of options

  6. This is a very big institution so what fails to make sense is the suddenness of the departure and someone lmmediately taking over while you go on leave without doing the usual in-situ handover.Also a youngish executive ‘retiring’ ummmmmm?

  7. There is definitely something more to all this. Nevertheless, if Mangudya is at RBZ, Chombo at the helm of the Finance Ministry, Shamu back as a minister and Nyemudzo had been fired, then the maths is pretty simple. He is different from all those who continue to be rewarded by the system. Hold on in there Never, we will need man like you in the New Zimbabwe. Right back into the same CBZ. And it is not far.

  8. ummmmmmmm; another Zanu.pf trick; ndeamwe maBillion akatobiwa apa; kutiza mhosva deplomatically; that man is a womaniser akaba mari with Dr Amai and also using her name. He recently shaned his wife with 5 kids to marry a 26year old. Pane chipande chihombe hombe chirikutizwa apa.

    Do open auditing muone.

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