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Mboweni resigns from AngloGold ahead of elections

Kevin Crowley, Mike Cohen

The former labour minister and reserve bank governor may be planning a return to politics as he steps down as AngloGold Ashanti's chairperson.

Ttio Mboweni served as labour minister in Nelson Mandela's government following the first post-apartheid elections in 1994. (Lisa Skinner, M&G)

Former South African Reserve Bank governor Tito Mboweni stood down as AngloGold Ashanti chairperson on Monday, adding to speculation he may take up a senior post in the government after elections in May.

A former labour minister, Mboweni (54) was elected to the ANC's 80-member national executive committee in December 2012, signalling his return to mainstream politics. He had been chairperson of AngloGold, the world's third-largest producer of the metal, since June 2010.

"He is a party heavyweight," said Pierre du Toit, a politics professor at the University of Stellenbosch. "I wouldn't be surprised if he makes a go at a senior Cabinet post. Whether he gets it or not is a different matter. There is big competition within the party for those posts."

South Africa is due to hold its fifth multiracial elections on May 7 that opinion polls show will extend the ANC's two-decade rule by a further five years, and return President Jacob Zuma to office for a second term.

Mboweni served as labour minister in Nelson Mandela's government following the first post-apartheid elections in 1994, a position he held until August 1999, when he was named head of the central bank. During his decade at the bank, he helped to build foreign currency reserves and introduce an inflation target, a policy that is opposed by labour unions. He was replaced at the bank by his one-time deputy, Gill Marcus.

New chairperson 
Mboweni, who is also chairperson of Nampak and Sacoil, stood down "as a result of his increasing portfolio of professional commitments", Johannesburg-based AngloGold said on Monday in a statement.

Sipho Pityana, who has been an AngloGold non-executive director for seven years, was elected unanimously by the board on Monday to replace Mboweni. Pityana was South Africa's first director general of the department of labour following democratic elections in 1994 and is chairperson of investment company Izingwe Capital.

AngloGold shares have dropped 42% since June 2010, when Mboweni became chairperson, while the gold price rose 8.3% in the period. Gold producers' profits have been squeezed by rising costs globally, while in South Africa, output has been disrupted by strikes and wages have almost doubled in the five years to 2012, according to estimates from the Chamber of Mines.

Mboweni oversaw the appointment of chief executive Srinivasan Venkatakrishnan last year, replacing Mark Cutifani, who left to become chief executive of Anglo American. Mboweni also sanctioned a cost-cutting plan that has helped boost AngloGold's share price by 62% since it was announced on August 7. The shares fell 0.7% to R190.85 as of 1.19pm in Johannesburg. – Bloomberg

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