You are currently viewing our desktop site, do you want to visit our Mobile web app instead?
 Registered users can save articles to their personal articles list. Login here or sign up here

Old Mutual fires suspended CEO Moyo

Following a conflict of interest related to an investment firm he founded.

South Africa’s second-biggest insurer Old Mutual said it had fired suspended CEO Peter Moyo, citing a conflict of interest with an investment firm he founded.

In a Tuesday statement, the insurer described problems engaging with Moyo following his suspension in May, which came less than a year after he took the over as CEO of the newly listed insurer.

Read: The investment firm that sunk Peter Moyo to suspension status

“Mr Moyo’s actions since the suspension contravened his fiduciary duties to Old Mutual, his contract of employment and his notice of suspension,” the statement said.

“Following unsuccessful attempts to engage on the terms of separation, the Board has now resolved to give notice of termination of employment.”

Moyo did not reply to a number of messages seeking comment. He told Reuters following his suspension there had been no wrongdoing on his part.

Old Mutual said in the statement the conflict of interest related to ordinary dividend payments made by NMT Capital, the investment firm Moyo founded and in which an Old Mutual subsidiary is the only institutional investor.

The insurer said that while Moyo’s interest in NMT Capital was declared and protocols were put in place to manage it, the two payments made by the firm in 2018, totalling R115 million, were a breach of its rights as a preference shareholder.

This was because arrear preference dividends were unpaid at the time and preference share capital was redeemable at the time of the second payment, it continued, adding it had not received an acceptable explanation for this.

The full-year financial statements for Old Mutual Life Assurance Company, the subsidiary that invested in NMT Capital, said the total impairment on preference share capital held in NMT Capital and NMT Group amounted to R97 million in December 2018.

Old Mutual said Moyo chaired the board meeting of NMT Capital where the second ordinary dividend of R105 million was declared, and that the benefit to Moyo and his personal investment company of the payments was R30.6 million.

NMT Capital declined to comment.

The insurer’s Johannesburg-listed shares were up 1.34% at 0732 GMT. Its London-listed shares also rose following the announcement.

Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.

COMMENTS   14

To comment, you must be registered and logged in.

LOGIN HERE

Don't have an account?
Sign up for FREE

When a person cannot cognate the conflict of interest clause he signed then he should not have been hired in the first place.

The humiliation! What a fitting end to a career. This is a guy whose major contribution at OM was to send a memo to staff sobbing about the loss of the former mother of the nation.

Was that the “with our matches we shall rule”, Stompie Seipei killer and diamond smuggler with the Krantzs?

The very same, the inventor of the necklace, our very own Winnie….

He hardly set the world alight wherever he has been and the explanation provided by OM seems adequate enough to warrant a dismissal.the only question is why bother hiring the dude in the first place—surely his contribution was going to be limited and it appears that fires are burning in the OM distribution space due to decisions seemingly linked to future bonuses

And now starts the CCMA hearings, court cases going on for years. OM you messed up big time hiring this guy.

In SA when you have that kind of money regardless of how you accumulated it you are referred to as a “Mogul”

Even Brett Kebble is still referred to as a mining magnate/mogul.

This guy is par for the course in SA.
This is what a country gets with companies having to be PC correct, conforming to BE requirements, not to mention behind the scene interference from incompetent and corrupt PIC investors.

@geranium – yea, BEE destroyed +R200b at Steinhof, +R22b at Tongaat, +R70b at Brait just to mention a few. I am sure Jooste, Staude and Gnodde would be surprised at their being BEE, PIC and PC stooges as they sit comfortably in their mansions spending their well-deserved gains.

Most mere mortals just need about 6 months of Peter Moyo BMC (or rather earnings) to sail into the sunset and a very comfortable retirement.

Load All 14 Comments
End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

SHOP NEWSLETTERS TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: