Old Mutual claims court did not consider real reason it axed former CEO Peter Moyo | Fin24

Old Mutual claims court did not consider real reason it axed former CEO Peter Moyo

Dec 04 2019 12:08
Londiwe Buthelezi

Old Mutual has argued that the Johannesburg High Court did not consider the real reason why its axed CEO Peter Moyo was fired when it ruled in July that he must return to lead the company.

The country's second largest life insurer fired Moyo in June. But Judge Brian Mashile instructed the company to reinstate him in July, saying his dismissal was illegal because he was not afforded a disciplinary hearing.

Old Mutual is appealing Mashile's ruling before a full bench of three judges in Johannesburg.  

When it filed its appeal, the insurer asked that if it cannot present its argument before a full bench, it must be allowed to take its case to the highest appeal court in the land, the Supreme Court of Appeal in Bloemfontein.

Senior counsel Vincent Maleka, for Old Mutual, told the judges on Wednesday that while Mashile based his judgment on two reasons - misconduct and conflict of interest - Moyo had not been fired for these reasons.

"The reason relied on by Old Mutual in suspending Moyo was the breakdown in the relationship between the board and Mr Moyo," said Maleka.

He said while Old Mutual did talk about Moyo's conflict of interest regarding the manner in which he handled payment of dividends by his private equity boutique, NMT Capital, neither his letter of suspension and nor his letter of dismissal said he was fired for these reasons.

"Nothing in this letter talks about misconduct, nothing in this letter talks about conflict of interest," said Maleka regarding the first letter Moyo received from the company suspending him on May 23, 2019. 

Moyo's legal team is yet to present its argument.

old mutual  |  peter moyo  |  law


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