Former media CEO gets top job at Reserve Bank

Groepe, the former CEO of publishing giant Media24, has served as one of two government-appointed directors of the board along with Raymond Parsons for the past seven years. Their terms expired in March.

The position of third deputy governor had been vacant since senior deputy governor Xolile Guma stepped down in July.

In April, Groepe and Media24 parted ways after an eight-year relationship, with the last three years as CEO. The official reason provided was that Groepe would lead the acquisition of the firm's school book publishers Via Afrika Education.

However, insiders said Groepe had to carry the can for the failed implementation of its circulation, subscription and distribution IT platform, Cycad, for its many print titles.

According to a Reserve Bank statement, before joining Media24, Groepe was senior group controller at Swiss Re and chief financial officer of Swiss Re's Life and Health subsidiary in SA. He holds BComm (Hons), MBA and LLB degrees, and a Postgraduate Diploma in Tax Law.

He is a chartered management accountant and an advocate of the high court.

Groepe's appointment is the latest in a number of changes in personnel since Gill Marcus took over as Bank governor.

Lesetja Kganyago, who has worked for the government for much of his life, left his directorship at the Treasury to become a deputy governor.

Private sector experience

Groepe will bring private sector experience to the Bank and the monetary policy committee. Most of the other members, including Brian Kahn and Monde Mnyande have academic and research-based experience.

However, Pan African Securities economist Iraj Abedian said yesterday he did not think Groepe was appointed because of his different background to other senior members of the bank. "Yes, globally, bank members are monetary policy experts. Many have academic and research experience but this does not necessarily mean that he (Groepe) was chosen because he had worked as a CEO and not spent his professional life making policies.

"The governors are appointed by the government, while other staff is appointed independently so as to keep institutional integrity," he said.

Economist Dawie Roodt of the Efficient Group said Groepe's appointment was part of a growing trend of appointing non-bankers to the central bank. He said this was in line with the move away from conservative thinking that ruled monetary policy under Chris Stals. "I suspect that he (Groepe) is a dove and not a hawk. Marcus herself is a dove and it is conceivable that she influenced the decision to appoint Groepe to surround herself with likeminded people."

Azar Jammine of Econometrix suggested that the appointment was to shore up management and administration at the bank as a number of senior staff were nearing retirement.

Source: Business Day via I-Net Bridge