16 Aug 2019
Judgement reserved on latest Old Mutual, Moyo battle
The Joburg High Court on Friday heard from the legal teams of Peter Moyo, Old Mutual and 14 of its board directors.
The parties are embroiled in a legal battle over Moyo's reinstatement as CEO at the financial services provider. Old Mutual in May suspended Moyo and dismissed him in June citing a conflict of interest and an alleged breakdown of trust.
Moyo however challenged the dismissal in court. On July 30 Justice Brian Mashile ruled in his favour. Part B of Moyo's application which is still to be heard seeks the courts to declare Old Mutual's as delinquent for dismissing him without following due process, he is also seeking a damages claim for reputational harm he was caused.
Despite Mashile's ruling Old Mutual has since barred him from returning to work and filed an appeal. Moyo's legal team has hit back and said Mashile's interim order cannot be suspended on the back of Old Mutual's notice to appeal.
Old Mutual then filed an urgent application for a declaratory order that Mashile's ruling is final or suspend the implementation of his directives citing "exceptional circumstances".
During Friday's hearing Moyo's lawyer – Advocate Dali Mpofu presented arguments that Old Mutual has acted in contempt of court by refusing his reinstatement in the interim.
While Old Mutual lawyer Advocate Vincent Maleka put forward that Mashile's ruling be declared final Granting that order means that the directives of the first part of Moyo's application are suspended.
Judgement has been reserved and Mashile will make a decision within the next two weeks.
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Maleka asks Mashile to grant leave to appeal because his judgment has the effect of finality.
Granting that order means that the directives of Part A of Moyo's application are suspended.
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Dickerson is explaining why he should be allowed to argue on behalf of all 14 directors. He says his clients were dragged into the matter, they should be allowed to make their submissions on allegations that they followed an "abusive process" against Moyo.
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Mpofu goes back to OM's argument of the litigation extending 4 years.
Mpofu says it is an "imaginary four years".
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Mpofu says OM is taking a "winner takes all approach" at the expense of shareholders.
OM appears to be willing to lose R10bn- R15bn for as long as their egos are intact.
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Mpofu quotes an interview with OM director Paul Baloyi and eNCA, Baloyi said that OM does not want Moyo back as CEO and will be searching for a new one.
This after Mashile's ruling to reinstate Moyo.
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Mpofu says that Mashile could have come with the best ruling seen in the history of mankind but OM appeared to already have a plan to appeal.
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Mpofu says OM has regurgitated arguments that failed in court to the media. Despite the court's ruling they have barred Moyo's return. OM is in contempt of the court's ruling.
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Mpofu says contrary to what Maleka (OM lawyer) says, the application has been brought with all serious. It is not to be taken lightly.
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Mpofu says despite a court order, Moyo is being heavy handled by security when he goes to his office.
Old Mutual is not suffering irreparable harm, they must just grow up.
The relationship between a CEO and the board must have tension for a company to work, it does not have to be a cosy relationship, says Mpofu.
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Mpofu says typical of big companies they think everything revolves around money, They just throw money.
Mpofu says Moyo is sitting at home, humiliated, told every day by directors on TV that he is guilty over a conflict of interest and OM thinks it is fine because he has been paid money.
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Mpofu questions Maleka's statements that there is no point in Moyo contesting to be reinstated to earn emoluments because he was already paid.
"Moyo has been locked out physically out of his office, he is sitting at home when he has a judgment in his favour reinstating him from Justice Mashile.
"Out of the kindness of his heart, he could be going to OM every morning saying he wants to work, but because he respects the legal process he is sitting at home twiddling his thumbs."