Africa-Press – Botswana. The Vice President and also Minister of Finance, Mr Ndaba Gaolathe says he is aware that the transition of Barclays Bank to ABSA did not attract any severance benefits or remuneration packages for former Barclays employees.
Answering a question in Parliament yesterday, he said ABSA Bank Botswana Limited absorbed all employees during the transition period, hence there were no severance or terminal payments arising from the acquisition. He explained that Barclays Public Limited reduced its shareholding in Barclays Africa Group Limited (BAGL) and ultimately fully divested from BAGL. The transaction, he said, was effected by way of an acquisition of BAGL by ABSA Group Limited.
Mr Gaolathe shared that ABSA Group Limited acquired 100 per cent of BAGL shares in issue, noting that the transaction resulted in change in shareholding of the underlying banking operations at the BAGL level, including in Botswana. Furthermore, he said when Barclays PLC divested its shareholding in BAGL and exited Africa, rebranding to ABSA Group Limited was effected.
The change in shareholding at the group level, he noted, did not affect employment of staff in the underlying banking operations, as AGL moved with all employees. Mr Gaolathe said even in Botswana, all employees of the erstwhile Barclays Bank Botswana Limited were absorbed by ABSA Bank Botswana Limited after rebranding.
Lentsweletau/ Lephephe MP, Mr Tshenolo Bogatsu had asked the minister if he was aware that the transition of Barclays Bank to ABSA Bank did not attract any severance benefits or remuneration packages for former Barclays Bank employees. He also requested the minister to state the reasons for non-payment of terminal benefits and why the transition shift did not attract monetary benefits.
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