LONDON — It was with great sadness that I heard of the passing yesterday of Piet Badenhorst (80) after a battle with cancer. In his prime, he was one of a disruptive giant in South African financial services, promoting a forerunner of the low-cost, high volume model so expertly applied by Capitec. Forthright to a fault, Badenhorst made many enemies while transforming sleepy United Building Society into an efficient business that became the vehicle for the creation of Absa, Africa’s biggest retail bank. During these years, I engaged with him on both a professional and personal level, finding his ethics to be impeccable and advice invaluable. An ability to stay outside of the corporate network and thus design disruptive strategies was his strength, but also his weakness. Among the ironies of my career was my only spell outside of journalism was the two and a half years when I helped fix Absa’s reputational problems shortly after Badenhorst was fired by the group he created. His often abrasive “take no prisoners” approach rubbed many people the wrong way, but Badenhorst’s supporters never wavered. Piet took great pride in publicly expressing a love for the simple things in life, among them an obsession for racing pigeons used by detractors as a source for ridicule. About that kind of thing he couldn’t care less. After he was ejected from Absa, the extended Badenhorst family emigrated to Australia where he sought and maintained a low profile. Lucien Vallun, a friend and business associate, agreed to write this short obit which is published below. – Alec Hogg
By Lucien Vallun*
One of the most influential figures in South African banking during the 1980’s and 90’s, Piet Badenhorst, passed away peacefully at his home just outside Sydney, Australia on Tuesday this week. He was 80.
Piet rose from a humble railway home in Langlaagte on the West Rand to attend Helpmekaar Hoerskool and Wits University, and subsequently to qualify as a Chartered Accountant at a time when Afrikaans speaking accountants were relatively scarce within the South African business community.
After a brief spell in the auditing profession, Piet joined the United Building Society where he rose meteorically to become managing director under the then chairman Philip Sceales. His vision was to see building societies progress from mutual institutions – the “Cinderallas of banking” – to fully fledged commercial banks. It was at this time that I was fortunate to meet Piet and cement a longstanding and close relationship with him as a confidant and friend until his departure from ABSA in 1993 and thereafter.
His pursuit of his vision was not without challenges and controversies. The powers that be in South African financial services at the time were in no great hurry to accommodate his vision. It spelt the disruption of a relatively comfortable market status quo by someone who was quite prepared to challenge the loftiest of institutions. Piet was never one to shy away from a fight and I recall vividly his plan to demutualise the United Building Society, establish and list United Bank on the JSE and use it as an acquisitive vehicle to become a significant player in South African banking.
I recall his speech whilst accepting the Business Day Company of the Year Awards in 1987, when he fired his first salvo to the large gathering of captains of industry, indicating his intentions to disrupt the existing market order. The reaction of many was troubled and boisterous to say the least.
Much has been written about the subsequent acquisition of the Allied and Volkskas banks and the later acquisition of Bankorp. I will not add to it except to express my personal view that I do not believe the Bankorp acquisition was ever part of Piet’s initial plan. I believe it was more the result of considerable coercion from a lofty institution in the Cape in order to divest itself of a troublesome loss making banking investment.
On a personal note, I believe South African banking was the poorer for Piet’s departure. I always regarded it as a privilege to work with him and I am very sad at his passing. Despite his combative spirit, he was a humble man who adored his family and was an ardent motor racing enthusiast and Lions supporter. Despite his ill health, I hope he may have been able to catch a glimpse of his beloved Lions triumphing over the Hurricanes last Saturday.
Lucien Vallun (right) is a leading South African communications executive. After selling his successful SA business to Fleishman-Hillard, for the last nine years of his career he was MD of the group’s UK operation and then regional manager for Europe and the Middle East.
