Steward Bank CE Ngwenya shown the exit door

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    HARARE,– Steward Bank chief executive officer Kwanele Ngwenya has been forced out of the banking institution days before his two year contract lapses over corporate governance issues, sources have said.

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    UPDATED: Steward Bank CE Ngwenya shown the exit door

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    Ngwenya, who took over the helm of the bank after its takeover by mobile phone operator Econet Wireless Zimbabwe from TN Financial Holdings two years ago, was under pressure due to the poor performance of the bank’s loan book and issues relating to loan disbursements. The bank is understood to be considering appointing its chief finance officer Bright Mahere to act as CE.

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    “The bank is now awaiting approval from the central bank before it issues a statement to that effect. He decided to step down after he was informed that his two-year contract which expires at the end of January would not be renewed over corporate governance issues,” a source close to the development said.

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    Steward Bank chairman Tomisin Fashina in a statement released late on Thursday confirmed this development.

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    “The Board of Directors of Steward Bank announced today that Mr Kwanele Ngwenya has indicated his desire not to renew his contract as Chief Executive Officer. Mr Ngwenya will step down from his position at the expiry of his contract on January 31, 2015,” Fashina said.

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    “We are grateful for Kwanele’s leadership during his tenure as Chief Executive Officer, during which he oversaw Steward Bank’s successful rebranding and transformation into one of the country’s leading banks. We wish him all the best in the next phase of his career. The Board will appoint an executive in an acting capacity pending the appointment of a substantive chief executive officer.”

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    Ngwenya, a career banker, has previously worked for FNB Botswana – where he was head of both retail and corporate banking at different times — Old Mutual, Nedbank and Saambou.
    \nHe was not immediately available to comment.

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    The bank, formerly TN Bank, anchors Econet’s mobile money transfer service EcoCash as well as its associated savings platform and debit card facility.

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    Last August, Steward Bank reported it had narrowed its six-month after tax loss to ,8 million from million the previous year.

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    Interest income at ,294 million was higher than the ,039 million recorded in the prior year and the bank also experienced a 63 percent growth in customer’s deposits which stood at 0 million from million in the previous year. – The Source