Old Mutual not backing down on Moyo litigation


Old Mutual not backing down on Moyo litigation

Published Date: 2019-09-16 | Source: Stephen Gunnion | Author: Stephen Gunnion

Old Mutual not backing down on Moyo litigation

The financial services group says a second letter terminating Peter Moyo's contract remains valid and he is not welcome in the building.

Old Mutual says it hasn't backed down on the litigation between itself and its erstwhile CEO Peter Moyo. And the financial services group says Moyo is still barred from returning to work in the meantime.

In a statement aimed at providing clarity to a legal letter sent to Moyo's attorney's last Thursday, the group said it wouldn't seek further court intervention relating to Moyo's second letter of termination. It would, however, still proceed with its ongoing appeal process against an earlier judgement handed down in the High Court in the matter. And it reserved its rights in all respects relating to the existing or any future proceedings before the court.

Old Mutual issued Moyo with the second termination notice last month after the High Court ruled that he should be reinstated. That's after it followed a flawed process when it first fired him in June over a conflict of interest due to his position as CEO of the group and non-executive director and shareholder of NMT, a group that Old Mutual owns a stake in. Concern had been raised over non-payment of dividends at the time and it said there had been a "material breakdown in trust and confidence" between Moyo and the Old Mutual board.

It believed media reports may have misinterpreted one sentence in its legal letter where it said it would be more appropriate not to engage in further collateral litigation as the intention was to de-escalate the flurry of litigation between the parties.

Old Mutual said an urgent application by Moyo, in which he claimed the group was in contempt of court for not allowing him to resume his duties as CEO, was still on the table and judgement was expected in about a week. It maintained that its second letter of termination remained valid and that Moyo was not permitted nor required to return to work in the interim.

In its interim results, released earlier this month, the group said it was in the process of exiting its investment in NMT Capital.

Its shares rose 1.7% to R20.05 on Friday.

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