In another twist of events between South African financial services firm Old Mutual and its former chief executive, the company has told shareholders it has given Peter Moyo a “further notice terminating his employment”.
This is the second time Old Mutual has done so, following the first instance in June 2019, after he was suspended for a “material breakdown in trust and confidence” in May 2019.
The suspension related to a “conflict of interest” Moyo failed to disclose, the company said.
He sued Old Mutual for unfair dismissal.
Judge Mashile ended up siding with the former chief executive, and ordered the South African firm to reinstate him.
But Old Mutual appealed trying to stop Moyo from being reinstated.
Severing ties
The second termination notice came as a surprise considering that the appeal proceedings are still pending.
“It will remain important to finally resolve the dispute about the validity of the June notice of termination,” Old Mutual told its shareholders.
“However, irrespective of what might eventually happen in those legal proceedings, events following the June notice have made it clear that a continued employment relationship between Mr Moyo and Old Mutual is untenable.
“The directors have been appointed by shareholders, and are required to take appropriate steps in the exercise of their fiduciary duties to the company. It is clearly in the best interests of the company and its stakeholders that the employment relationship with Mr Moyo should come to an end.”
In a rush
But Moyo’s lawyer, Eric Mabuza, hit back at Old Mutual, deeming the firm’s notice “corporate madness”.
He told local news website Fin24: “This is a classic case of contempt of court, it is worse than delinquency.”
Mabuza added that he believes Old Mutual directors are protecting their own interests above those of shareholders, and asked why the company did not wait until the court ruling was out, which is expected to be next week.
The sacking of Moyo has no connection to Quilter or Old Mutual International, which has yet to adopt the group’s branding.
