FirstRand announced on Tuesday that Cyril Ramaphosa has resigned as a non-executive director of the banking group.
“Mr Ramaphosa, in his capacity as chairman of and significant shareholder in Millenium Consolidated Investments [MCI], has been offered an opportunity to participate in a BEE [black economic empowerment] transaction, which will result in a conflict of interest with his existing position as a director of FirstRand Limited.
“He has therefore, in order to avoid any potential conflict of interest, tendered his resignation with immediate effect before proceeding with further negotiations regarding such investment,” FirstRand said in a statement.
It added that MCI was offered participation in the proposed FirstRand BEE transaction but declined to take up the offer due to numerous conflicts that would arise.
Commenting on the news, GT Ferreira, chairperson of FirstRand, said: “It is well known that FirstRand has made considerable progress in putting together a BEE transaction and MCI would have been an ideal partner for the group. It is unfortunate that due to their commitments, Mr Ramaphosa and MCI are unable to participate.
“In the two-and-a-half years that Mr Ramaphosa served on the FirstRand board he has made a valuable contribution to the success of the group. It has been an honour and a privilege to have had him as a member of our board and we wish him every success in his new venture.” — I-Net Bridge