Old Mutual Again Blocks Its CEO From Getting Back to Work

JOHANNESBURG (Capital Markets in Africa) – Old Mutual Ltd. directors barred Peter Moyo from resuming his duties as chief executive officer, opening a new round in their bitter feud.

The 56-year-old, accompanied by his lawyer, arrived at the company’s headquarters by 8:30 a.m. dressed in a blue suit with a gray and white tie. He was gone before lunchtime, having spent most of the morning in a boardroom awaiting a decision on whether he would be allowed to work — mirroring events almost six weeks earlier.

The 174-year-old company and Moyo have been locked in a messy legal battle since his suspension in May and dismissal in June amid allegations and counter-accusations of corporate-governance failures.

Moyo was “neither permitted nor required” to come to work, a company spokeswoman said on Monday.

Old Mutual is preparing a court application that Moyo will “vigorously” oppose, the lawyer, Eric Mabuza, told reporters at company’s offices. Moyo will study the application before deciding whether he will try to show up for work again on Tuesday, he said as he prepared to leave the firm’s offices accompanied by his wife.

Earlier, as Moyo hung around the headquarters in Johannesburg getting a coffee, a staffer approached and hugged the on-and-off again chief executive officer, and said how good it was to see him.

After a ruling on July 30 that the firing was unlawful and that he can return to work, Moyo was sent home the next day as Old Mutual appealed the judgment. The Johannesburg High Court Friday dismissed Old Mutual’s bid to block Moyo from working, while allowing the insurer leave to appeal the initial judgment.

On Aug. 21, Old Mutual gave Moyo further notice of termination, which still stands, the company said in an emailed statement. Old Mutual, which has businesses spanning asset management to private equity across 12 African countries, is confident another court will come to a different conclusion on the first judgment, it said.

The spat has pitted Moyo against Old Mutual Chairman Trevor Manuel, the country’s former finance minister. With neither one ready to back down, Old Mutual’s share price has suffered, falling more than 11% since the CEO was suspended, compared with a 4% decline in the five-member FTSE/JSE Africa Life Assurance Index.

Judge Brian Mashile in his ruling on Friday said that “the relationship between the parties is unwholesome” and that the “nature of that relationship would potentially have a serious, immediate, ongoing and irreparable damage” on Old Mutual, according to the statement.

Source: Bloomberg Business News