eBusiness Weekly
Business Writer
PEOPLE’S Own Savings Bank (POSB) chief executive officer, Mr Admore Kandlela, is stepping down from his post in October having been at the helm of the State-owned institution for over a decade.
Kandlela’s contract expired last year, and in terms of the bank’s retirement policy, was due to retire.
But the contract was extended by a year.
Speaking during the bank’s 8th Annual General Meeting held in Harare on Tuesday, POSB acting chairman, Israel Ndlovu said Kandlela was leaving the bank on the 31st of October 2022.
“I want to announce here now that Mr Kandlela is due to retire from the bank as CEO in terms of statutory provisions having served the bank for more than 10 years.
“Mr Kandlela actually joined the bank in October 2003, which makes it about 19 years …the Public Entities and Corporate Governance Act which prescribes certainly Mr Kandlela retires that way after loyally and diligently serving the bank,” he said.
And in line with POSB human resources policies and procedures, a gratuity would be paid to the outgoing CEO subject to the approval of the bank’s AGM and the Minister of Finance and Economic Development.
“The policy reads, ‘that the gratuity may be paid at the discretion of the board at a rate of two months’ gross salary for every year of service up to a maximum of 10 years’.
“It is therefore recommended by the board that Mr Kandlela be paid a gratuity of two months’ salary for every year served, which means it will be 20 months the salary that will be paid.
“So, basically, it is up to this assembly to understand that we are going to pay gratuity to the outgoing CEO and endorse it,” said Ndlovu.
At the AGM, stakeholders passed all the resolutions, among them the adoption of the financial statements and the report of the directors and auditors for the year ended December 31, 2021; approve the payment of a dividend of $3 per share to the shareholder for the year under review as well approve the remuneration of the external auditors for the period ended December 31, 2021 totalling $11,7 million.
Speaking at the same occasion, POSB chief finance officer, Gairainashe Changunda, said in the year under review, the financial institution was able to generate income totalling $721 million after adjusting the accounts for inflation.
“But before we adjust accounts for inflation in terms of historical figures, we generated $888 million so, I would say in a way we were able to manage our business in such a way that we generated enough revenue to cover our operating expenses.
“What we are also seeing on the income statement is the net interest income, during the period in question, we were able to grow our net interest income by 195 percent for $360 million in 2020 and we were able to increase that to $932 million by end of December 2021,” he said.
