You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App
Join our mailing list to receive top business news every weekday morning.

PIC wants end to CEO dispute: Times

‘We would prefer for the two parties to come together and resolve the matter,’ – Khoza.
Old Mutual Chairman Trevor Manuel has been locked in a dispute with ousted CEO Peter Moyo over his reinstatement, which the PIC is calling an end to. Image: Moneyweb

Old Mutual Ltd.’s largest shareholder wants the insurance giant to urgently end a months-long dispute with fired Chief Executive Peter Moyo, the Sunday Times reports, citing Reuel Khoza, chairman of the Public Investment Corporation.

The PIC told the Old Mutual board chairman Trevor Manuel to urgently resolve the disagreement with Moyo, who, despite scoring two court victories against the insurer, was prevented from resuming work by the company. The PIC, Africa’s largest fund manager, is concerned about Old Mutual’s plan to end the dispute through courts as the legal route may become “protracted,” the newspaper cites Khoza as saying.

“While that proceeds apace, the company’s performance will be suffering, the share price will be eroding or may fail to recover,” Khoza said. “We would prefer for the two parties to come together and resolve the matter.”

Read: Old Mutual pleads for its board members not to be jailed

Old Mutual shareholder urges board to end wrangle with CEO

The spat between the 174-year-old insurer and Moyo spilled into the open in May when he was suspended for an alleged conflict of interest. The company fired him three weeks later, a decision Moyo successfully challenged in the High Court in Johannesburg. Old Mutual has prevented the 57-year-old from returning to work on grounds it is appealing the ruling to temporarily reinstate him. Moyo, who was issued with another notice of termination in August, is demanding a R250 million damages claim.

Read: Old Mutual’s fired CEO Peter Moyo seeking R250m in damages

“We don’t believe in threats, we don’t believe in imposing ourselves unduly in the affairs of our investee companies, but we can’t sit back and behave as though there are no problems,” Khoza said, according to the Sunday Times.

© 2019 Bloomberg L.P.

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.


You must be signed in to comment.


Mr. Khoza is not the only one seeking to resolve this fracss yesterday already, the shareholders vote are on that, and Mr. Peter Moyo has already extended his olive branch (so to speak) [R250 million rands]. The only thing that stands in the way is this Board, once again. They have to think about it, they have a few options, (1). be voted out by the shareholders (en masse), (2) go to jail for contempt of court (before or after #1.), (3) settle the dispute more likely closer to Mr. Moyo’s liking and go away. Either way, the courts are going to get them, be it to settle, or to go to jail, else the shareholders will get them. They can’t just wiggle out of this one, its a spectacular mess, if you ask me! Maybe they can can have coffee in the prison hall’s lobby soon.

Both the board and Moyo have let OM shareholders, policyholders and employees down: the board, by illegally firing Moyo, and Moyo, by putting his own business interests above OM’s.

They all need to go.

The settlement must entail some orange overalls.

End of comments.





Follow us:

Search Articles:Advanced Search
Click a Company: