Peter Moyo’s herculean battle to be temporarily reinstated as Old Mutual CEO and having his sacking from the insurer declared unlawful is expected to play out at the South Gauteng High Court in Johannesburg on Tuesday 16 July 2019.
Old Mutual suspended Moyo on 23 May, hours before the insurer’s annual general meeting, citing a conflict of interest due to his involvement with NMT Capital that resulted in “a material breakdown in the relationship of trust and confidence”. The insurer fired Moyo on 18 June saying that the breakdown was attributed to a conflict over ordinary dividend payments declared by NMT Capital worth more than R100-million during its 2018 financial year.
Old Mutual’s response also reveals that its battle with Moyo is not just about outstanding preference share dividends but about solvency problems at NMT. If Old Mutual is to be believed, NMT depended on the insurer for its survival. Old Mutual said the IDC debt wasn’t disclosed in a board pack during an NMT board meeting on 4 July 2018. The meeting was chaired by Moyo, who ended-up disbursing dividends payments to ordinary shareholders totalling R105-million on “the basis that it was not indebted to the IDC at all”.
In other words, Old Mutual is vexed that Moyo and other shareholders pocketed dividends “without evidence that a proper solvency and liquidity analysis” had been conducted and while NMT had debt obligations to the IDC and outstanding preference share dividend payments to Old Mutual.
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