NATIONAL NEWS - Old Mutual has taken to the decision not to pursue further legal action against their CEO Peter Moyo.
Power FM’s Aldrin Sampear reported on Twitter that Old Mutual has said they “would prefer not to have to engage in further collateral litigation”.
Fin24 reports that in a lawyer’s letter to Moyo’s legal team, Old Mutual’s law firm said the company had abandoned an urgent application it had planned to bring against Moyo.
In a lawyer’s letter to Moyo’s legal team, seen by Fin24, Old Mutual’s law firm said that the company was drawing up an urgent application against Moyo, but then reconsidered it.
“It has now decided that it would be more appropriate to attempt to de-escalate the litigation between the parties, and it would prefer not to have to engage in further collateral litigation.”
The insurance company has fired Moyo twice.
Moyo, however, has won two court victories against the company, with the first ruling finding that the proper processes were not followed when he was dismissed and that he was therefore fired illegally.
Then, on September 6, an application brought the company in a bid to prevent its former Moyo from returning to work had been dismissed with costs.
It was reported on September 10 that Moyo reported for duty at Old Mutual on Monday this week following the ruling, but was led to a boardroom where he was told he would not be allowed access to his office.
Old Mutual said a conflict of interest and a breakdown in trust was behind their decision to remove Moyo. The conflict of interest claim stems from the fact that Moyo owns 25% of a company he co-founded called NMT, which Old Mutual owns 20% of.
The Old Mutual board said a breach of dividend payments by NMT was behind their decision to fire Moyo.
In what became a nasty battle between the two parties, Moyo asked the high court in Johannesburg for an order to declare the conduct of Old Mutual and its board of directors to be in contempt of court. Contempt of court offence relates to being disobedient or disrespectful towards a court of law regarding its judgments/orders.
The board of Old Mutual then launched a stinging rebuttal, saying the contempt of court application was “invasive” and had “severe” implications.
Then, on August 22, Old Mutual issued an open letter to shareholders, saying that it had given Moyo a further notice terminating his employment contract with SA’s second-largest insurer – effectively firing him again.
