Sharia banking in South Africa
First National Bank's sharia banking division is in a state of flux after it was hit by a corporate governance scandal in which its chief executive, Ebi Patel, was put on "special leave" for almost a month while an internal probe was conducted. Patel has been reinstated, but is facing disciplinary action.
There has also been a mass exodus of members of the sharia board, which is meant to approve products. There were claims of misappropriation of funds, conflicts of interest, unfair labour practices, and mistreatment of staff, board illegitimacy and fraud.
The shenanigans have been kept under wraps, with the bank throwing cold water on allegations two weeks ago. An investigation was launched late last year after staff alerted Iris Dempsey, the FNB Wealth head to whom Patel reports, about potential internal operational breaches.
Dempsey told the Mail & Guardian in early January this year that the bank was "comfortable with the findings of the investigation" and Patel was back at his desk.
http://mg.co.za/article/2012-01-20-fnb-shakes-up-sharia-division