Now IDC threatens to sue Moyo
Peter Moyo’s NMT Capital, the company at the centre of his conflicts with Old Mutual, is facing a claim of more than R150m from the Industrial Development Corporation (IDC), according to Business Times.
While Moyo, dismissed as CEO of Old Mutual in June, continues his court battle with the life insurer, the IDC has joined Old Mutual in the queue for payment from NMT. Both sent letters of demand last week to the company co-founded by Moyo as Amabubesi in the early 2000s.
The IDC is threatening legal action to recoup R157m. This amount was a guarantee provided by NMT after the IDC had funded an investment by an NMT subsidiary in the construction sector. By November last year, the IDC and NMT reached a settlement, but the corporation has since terminated the agreement and now wants its money, because it claims NMT had not played open cards.
ENS Africa, the IDC’s lawyers, in a letter last week urged NMT to pay up, ‘failing which our client will have no other option but to consider its legal remedies against the directors (in their personal capacities) and the shareholders’.
The letter also alleges that NMT’s directors had breached their fiduciary duties in their dealings with the IDC and had acted unlawfully in declaring and paying dividends to shareholders.
Old Mutual said on Friday that it had received R46.5m from NMT as a redemption amount in satisfaction of its preference shares.
The life insurer in May suspended Moyo as CEO and later terminated his employment due to a breakdown of trust and confidence over conflicts of interest.
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