Ex-Old Mutual CEO Peter Moyo heads to court on Tuesday (today) to challenge his dismissal. He wants the court to grant him an order banning the financial giant from appointing his replacement and declare his suspension and dismissal unlawful and unconstitutional.
Moyo is challenging his dismissal citing a number of reasons. Among other reasons, he argues that his suspension and ultimate dismissal was without a hearing. He says at his level and status of employment, the mere suggestion that he was found guilty of conflict of interest was damaging to his reputation and good name in the business world and society in general.
On the other hand, Old Mutual says there is no legal or factual basis that his termination of employment was in breach of contract, noting that Moyo has chosen not to pursue the matter under the provisions of the Labour Relations Act.
Moyo also refutes the allegations that he breached Old Mutual’s rights as preference shareholder when the NMT which Moyo co-founded in 2002 paid him a total of R115m ordinary dividend in March and July.
The payment was done while preferential share dividends to Old Mutual were in arrears. Old Mutual Life Assurance Company, a subsidiary of Old Mutual, is an investor in NMT Capital in which Moyo has a 25% stake.
In his affidavit, Moyo says Old Mutual was eventually paid the preferential dividend in October 2018.