Old Mutual wins case against Peter Moyo

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  • South African High Court declares Moyo’s firing as legal
  • Old Mutual is now free to appoint a new CEO
  • Peter Moyo may appeal the decision
  • Old Mutual Zimbabwe under a new CEO

JSE listed heavyweight, Old Mutual which has operations in Zimbabwe, this morning won a high court case against former group Chief Executive Peter Moyo. The ruling saw the group’s shares scaling 5.1% on the JSE, putting it on track for its best one-day performance in more than eight weeks.

The protracted legal feud between insurance company Old Mutual and its former Moyo resumed today following Old Mutual’s decision to appeal an initial court ruling in July last year that declared the insurer’s firing of Moyo as unlawful and ordered for his temporary reinstatement.

Old Mutual suspended Moyo in May and fired him in June over allegations of gross misconduct and a breakdown in trust and confidence. The relationship breakdown stemmed from Moyo allegedly not acting in the insurer’s best interest by pocketing a dividend, worth millions, from NMT Capital –  ahead of the investment firms payout of preference dividends owed to Old Mutual.

The outcome means Moyo cannot return to work as CEO and will have to pay the costs of the appeal case. Peter Moyo’s says he is dissatisfied with the court verdict that declared his firing as Old Mutual CEO as lawful. Moyo indicated he may appeal the verdict.

Old Mutual’s head of Communications, Tabby Tsengiwe was very emotional after the court overturned Judge Mashile’s decision to reinstate Peter Moyo as CEO. In an official statement soon after the ruling, Tabby expressed that Old Mutual’s victory in court today means it’s free to look for a permanent CEO.

Meanwhile Old Mutual in Zimbabwe is now under the leadership of a new Chief Executive in the person on Samuel Matsekete who began his new role this January after having been at the help of First Capital Bank (formerly Barclays). Samuel replaced Jonas Mushosho who had been with Old Mutual for over 28 years.

EQUITY AXIS NEWS

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