Old Mutual to file Moyo response this week
Old Mutual will file papers this week opposing former CEO Peter Moyo’s bid to be reinstated, the financial services group said on Friday, notes BusinessLIVE. Moyo was suspended on 23 May because of ‘a material breakdown in the relationship of trust and confidence’, Old Mutual said at the time.
He was dismissed on 18 June.
The group cited a conflict over dividend payments to a private company co-founded by Moyo in which Old Mutual was invested. Moyo has turned to the courts in an attempt to be temporarily reinstated as CEO and to claim damages. He also wants the court to declare Old Mutual’s non-executive directors, including the insurer’s chair, former Finance Minister Trevor Manuel, delinquent.
Moyo previously accused Manuel of being heavily conflicted in overseeing the managed separation of the SA business from its UK operations.
The company said on Friday that Moyo and his legal team ‘appear to be following a deliberate strategy of attempting to divert attention from Mr Moyo’s own actions. This strategy has included casting aspersions on other directors of Old Mutual by making false and unwarranted allegations directed, in particular, at the board chair.’
Old Mutual said it was keen to deliver ‘a full response’ to Moyo’s allegations in court on 16 July ‘and is confident in the outcome’.
The stakes appear to be highest for Moyo, according to Business Day. If Old Mutual does not reinstate him, he may find it difficult to land an executive position in a public company of the same size as Old Mutual or Vodacom, where he has worked in the past. Labour consultant Andrew Levy said people like Moyo who leave their employment under a cloud usually do face problems.
‘It’s not a favourable impression on prospective employers,’ said Levy.
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