MBCA Bank, a subsidiary of NedBank of South Africa, is set to retrench 52 employees, including managers, as the organisation streamlines its operations.
“The retrenchment cost will be assessed once the final determination of the package has been made by the relevant government authorities,” said MBCA in a statement yesterday.
The bank said negotiations with managers and non-managers had already been done, and the exercise would begin soon.
“Negotiations with these two groups have been handled separately and a determination has been passed by the authorities with regards to managerial staff,” said MBCA.
MBCA said the bank was currently fulfilling the conditions on the determined and agreed retrenchment package for prospective retrenchees.
“All MBCA employees were remunerated on the due date and salaries for those selected for retrenchment were intended to be paid in line with the anticipated outcome of the retrenchment exercise which was pending before the relevant authorities,” said MBCA.
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The bank, however, advised all stakeholders that MBCA Bank Limited was adequately capitalised as confirmed in the last monetary policy statement and monthly statement of assets and liabilities.
In addition the liquidity level was in excess of the regulatory requirements.