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Peter Moyo’s return to Old Mutual starts with lawyers meeting

Old Mutual fights back and wants to appeal a high court judgment that immediately reinstated Moyo as CEO.
Peter Moyo arrived at Old Mutual's HQ on Wednesday to resume his duties as CEO, but was met with resistance as the life insurer seeks to appeal the judgment. Picture: Moneyweb

Although the Johannesburg high court ruled on Tuesday that Peter Moyo should immediately be reinstated as Old Mutual CEO, his return to the life insurer on Wednesday was marked by an urgent meeting with lawyers on whether he can resume his duties.

Moyo returned to Old Mutual’s headquarters in Sandton to resume his duties as CEO after Judge Brian Mashile ruled that his axing from the life insurer was unlawful because he was not afforded a disciplinary hearing before he was first suspended on May 23 and fired on June 18.

Read: Peter Moyo reinstated as Old Mutual CEO

Old Mutual to appeal court ruling reinstating insurer’s ex-CEO

However, Old Mutual said it has launched an appeal at the Supreme Court of Appeal, which might suspend the implementation of the high court judgment. The insurer said that it has informed Moyo and his lawyers that he was “not required or permitted to resume his duties” pending the outcome of appeal proceedings.

“At issue here is the difference in interpretation of the impact of the leave to appeal application. Either party is at liberty to approach the court for the relief,” said Old Mutual’s spokesperson Tabby Tsengiwe.

Dressed in a dark blue suit and flanked by his wife and daughter, Moyo walked into Old Mutual offices around 8am to make good on his promise to go “back to work and rebuild Old Mutual”. Moyo has been seen walking around the Old Mutual building but it is unclear whether he has returned to his office.

There was pushback from Old Mutual about Moyo returning to work as it held an urgent and confidential meeting with its lawyers about challenging the high court judgment.

Moneyweb understands that the meeting was also about how Old Mutual will handle Moyo’s return when the high court has interdicted the insurer from appointing his successor – even though the company has already appointed chief operating officer Iain Williamson as acting CEO.

Moyo’s lawyer Eric Mabuza sent a three-page letter to Old Mutual saying that he received Old Mutual’s communiqué “just before midnight” on Tuesday, in which the insurer stated its intention to appeal the judgment.

In the letter, Mabuza said Old Mutual’s claim that Moyo was not entitled to return to work until the court makes a ruling on the appeal was based on “the incorrect legal advice”.

Mabuza said while a high court order for interim relief was “indeed appealable”, Old Mutual’s notice to appeal the judgment did not “automatically suspend” Judge Mashile’s judgment to have Moyo immediately reinstated as CEO.

Old Mutual believes that Moyo’s court application was “ill-conceived, contained a number of false allegations, and should have been dismissed”, adding that it is optimistic that another court might come to a different conclusion.

However, Mabuza said that when Old Mutual appeals the high court judgment it must prove, among other things, that the insurer will “suffer irreparable harm” if the appeal is not granted. 

Old Mutual also has to demonstrate that Moyo “will not suffer irreparable harm if the court” rules in favour of the insurer to appeal the judgment.

“Any other course or steps taken by your client to prevent or impede our client form executing the decision of the court by returning to his office with immediate effect will accordingly be in willful contempt of court.”

According to Mabuza, Old Mutual proposed to Moyo that both parties should involve their lawyers to resolve their dispute. However, Old Mutual’s lawyers were not available on Wednesday. “Hopefully, the discussions between counsels will still take place today [Wednesday].” Moyo has since left Old Mutual’s offices.

The insurer fired Moyo on June 18 saying that the breakdown was attributed to a conflict over ordinary dividend payments declared by NMT Capital worth more than R100 million during its 2018 financial year. Moyo launched an urgent application at the high court in Johannesburg to declare his sacking as unlawful, which would pave the way for him to be temporarily reinstated as CEO.

When Old Mutual initially suspended Moyo, it cited a breakdown of trust and confidence between both parties. Manuel said there was no financial misconduct on Moyo’s part. The insurer later said there was a conflict of interest due to Moyo’s involvement with investment holding firm NMT Capital, which he co-founded in 2002. Old Mutual owns a 20% stake in NMT.

After Tuesday’s high court judgment, Old Mutual’s share price fell nearly 6% to R19.32, which marked its biggest one-day drop in about four months. During Wednesday’s intra-day trade, the share price fell 0.26% at 14:30.



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That awkward silence as he walks through the door at 8AM. Into an organisation of which he is CEO and which doesn’t want him. Wonder who will be more embarrassed?

His type don’t get embarrassed.

This is news??? – who actually gives a shot regarding these peoples squabbles – sort it out without involving the press
Both parties need to relook conditions of employment

Maybe his departure should have ended with a lawyers meeting.

One can’t help but think that this company now is controlled by a bunch of amateurs only concerned with their egos and personal gain.This does not bode well for the future of the company. Who is setting the vision and inspiring staff to their jobs?

Old Mutual’s board just fell on its own sword. Moyo was set a trap. The whole board must go, together with Mr Moyo.

It will be difficult to justify giving him a gold-shake now that they have harmed their own image and integrity. If they were to offer him a gold-shake would it be because they are trying to save themselves given they may even be declared delinquent directors in a few weeks? This is beautiful and they must go.

“gold-shake” hahahahaha

Who would want to own this share, or even worse do business with this amateur organization.

OM fudged two issues. 1 Moyo/NMT is at fault for not paying the dividends as agreed. 2 OM fired him without the right disciplinary process.

OM should have sued Moyo/NMT for the dividends, not fire him. Moyo is at fault and the OM Board created the original problem by not foreseeing the potential conflict of interests and then the Board created the further mess.

“Like Sands through the hour-glass…”

It’s an kafkaesque court ruling to order a company to reinstate a CEO where there has clearly been an irretrievable breakdown in the mutual relationship of trust and confidence that is indivisible from the employment relationship. The court has ordered something that cannot be achieved and the ruling is almost certain to be overturned. Fine to rule the dismissal unfair, and to order damages and compensation, but the ruling is bizarre. It’s about as logical (and as capable of being practically implemented) as a court order to unscramble an omelette and put the eggs back into their shells.

End of comments.





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