Old Mutual can replace Moyo

Axed Old Mutual CEO Peter Moyo has lost another legal battle after the Johannesburg high court said he could not interdict the insurer from its search for his replacement. The legal battle has centred on whether Old Mutual followed proper disciplinary processes when Moyo’s contract was terminated.

Axed Old Mutual CEO Peter Moyo has lost another legal battle after the Johannesburg high court said he could not interdict the insurer from its search for his replacement.

Moyo was fired with six months’ pay last June over alleged conflicts of interest related to investment company NMT Capital. Moyo is one of its founders, and Old Mutual was a 20% shareholder. He is alleged to have made a decision to pay dividends favouring NMT Capital over Old Mutual’s interests.

The legal battle has centred on whether Old Mutual followed proper disciplinary processes when his contract was terminated. In July last year, Moyo succeeded in having the Johannesburg high court urgently order Old Mutual to reinstate him, but Old Mutual appealed against this decision.

In January, a full bench of the Johannesburg high court ruled that Old Mutual did not have to reinstate him. Old Mutual said outside the court at the time that it would immediately start a search for a new CEO.

Moyo then said he would approach the Supreme Court of Appeal (SCA) to argue to be temporarily reinstated. He then approached the high court to ask it to order Old Mutual not to appoint a new CEO while he appeals against its decision to block his reinstatement.

On Tuesday, judge Colin Lamont ruled that Old Mutual could continue its search for a new CEO despite Moyo’s attempts to approach the SCA.

Old Mutual spokesperson Tabby Tsengiwe said Old Mutual “looks forward to continuing with our intensive process to recruit a permanent CEO to lead Old Mutual.

“This will give us and the market much-needed certainty.”

MOYO WAS FIRED WITH SIX MONTHS’ PAY LAST JUNE OVER ALLEGED CONFLICTS OF INTEREST

The group is being led by acting CEO Iain Williamson, who has applied for the top job.

In the second part of his legal application, Moyo is attempting to have the directors of Old Mutual, including board chair Trevor Manuel, ruled delinquent and is asking for payment of R250m in damages. He has also laid a contempt of court claim against Old Mutual for refusing him entry to work after he won an initial reinstatement hearing.