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The Public Investment Corporation delivered its annual results in Parliament today. During its presentation to the standing committee on finance the PIC said it is considering an application to liquidate Sekunjalo and revealed that it grew assets under management by R48 billion to R2.1 trillion. Chairman of the PIC Board, Dr Reuel Khoza spoke to CNBC Africa about its investment in Old Mutual.

PIC weighs in on Old Mutual

By Fifi Peters, reporter and anchor at CNBC Africa



As Peter Moyo prepares to file his responding papers to Old Mutual, the
insurer wants clarity on what work Moyo, <a href="https://www.cnbcafrica.com/zdnl-mc/2019/07/30/judge-orders-peter-moyo-to-be-reinstated-as-ceo-of-old-mutual/">who
won his court case to be reinstated as CEO in July</a>, should be allowed to do.



This was proffered in the insurer’s <a href="https://www.cnbcafrica.com/wp-content/uploads/2019/10/OML-Contempt-Answering-Affidavit_20191008.pdf">court
documents</a> filed on Tuesday in response to Moyo’s <a href="https://www.cnbcafrica.com/zdnl-mc/2019/08/12/old-mutual-peter-moyo-to-meet-in-court-friday/">contempt
of court application</a> against it, Chairman Trevor Manuel and its 13-member
board for
twice firing him as CEO and thrice barring him from returning to his corner
office at the Sandton-based insurance company.



How Moyo can return to work



At Old Mutual’s press briefing last month, the board members that were
present, supported Manuel’s remarks that Moyo could hold meetings in the
insurer’s foyer over coffee if he so wished, but would not be granted access to
his office.



But the company has now asked the court to clarify in what role Moyo can
resume his duties as CEO, if the court ruling ordering his temporary
reinstatement on July 30 holds.



For more on the #OldMutualvsMoyo saga <a href="https://www.cnbcafrica.com/page/2/?s=old+mutual">click here</a>



“Insofar as the Court considers that the temporarily restored contract of employment requires Old Mutual not only to pay Mr Moyo for his tender of services but also to put him to work…then the Court should issue clear orders as to what work Mr Moyo is required by the Court order to do, and what restrictions to that work may permissibly be imposed by the companies to protect their interests during the period of further litigation that will be taking place,” the court documents say.



Request for softer sentence other than jail



Other issues raised in the <a href="https://www.cnbcafrica.com/wp-content/uploads/2019/10/OML-Contempt-Answering-Affidavit_20191008.pdf">49
page document</a>, are that Old Mutual’s non-executive directors <a href="https://www.cnbcafrica.com/zdnl-mc/2019/10/08/why-old-mutuals-non-executives-chair-are-not-in-contempt-of-court/">could
not have acted in contempt of court</a> because they were guided by legal
counsel from Bowman Gillfilan and further independent legal advice at all
times.



But in the event that the court rules that they are in contempt, a
softer sentence should be considered by the court as imprisonment, the
punishment for contempt, would be “excessive” and “inappropriate.”



“I respectively submit that even if all the elements of contempt were
found to be established, imprisonment would be an inappropriately harsh
punishment and certainly not warranted on the facts of this case,” says Craig
McLeod, Head of Legal at Old Mutual in the court documents.



McLeod asks that the court to consider other relief for the directors to
absolve their contempt such as a fine.



“What would be appropriate in the present circumstances…would be for it
(the court) to set out in clear terms what specific actions are required by
them to remedy that contempt,” he says.



Responding to Old Mutual’s affidavit, Moyo’s attorney Eric Mabuza of
Mabuza Attorney’s told CNBC Africa that it was clear the company saw a real
possibility that its directors faced imprisonment.



“That’s why they are praying for leniency from the court that if
convicted, they should not go to jail,” Mabuza said.



He said Moyo was already in the process of preparing his response and
that it would be submitted within the five day deadline.



The contempt of court hearings are expected to take place at the South
Gauteng High court next month.

Old Mutual seeks clarity from court on what work Peter Moyo should be allowed to do

By Fifi Peters, CNBC Africa reporter and anchor 



Old Mutual says its decision to fire Peter Moyo for the
second time was lawful and that the board followed legal advice when they
barred him from returning to work three times so the company can’t be in
contempt of court.



This was the argument the insurer made in court documents
filed on Tuesday in the final hour of its ten day deadline to respond to Moyo’s
contempt of court application against it and its 13-member board.



Moyo’s application, in which judgement has been delayed, is centred
around the July 30 ruling in which the High Court overturned Old Mutual’s
decision to fire Moyo for the first time and ordered he be temporarily
reinstated as CEO. Its implications are so severe that should Old Mutual be
found to have acted in contempt of court, it could face a hefty fine and its
non-executive directors, chaired by Trevor Manuel, may be sentenced to jail for
up to six months.



Why directors are not
in contempt of court?



When Old Mutual’s Board served Moyo with a letter on the afternoon
of July 30, which said he was not permitted or allowed to return to work the
next day, despite the High Court ruling, the directors say they acted on legal
advice from legal counsel Bowman Gilfillan.



Old Mutual says it was advised&nbsp;that the July 30 ruling
which 1) ordered Moyo’s temporary reinstatement as CEO and 2) blocked Old
Mutual from appointing a new CEO pending further legal action, was final in
nature and could be blocked by Old Mutual’s decision to appeal.



Furthermore, Old Mutual says in court papers that it was
told by its legal counsel that it could not allow Moyo to resume his duties
while its urgent application to declare the July 30 ruling as final or suspend
its orders through a Section 18 application was underway.



“(Old Mutual’s) genuinely believed on the strength of the
legal advice in which they had confidence, that the order was suspended as a
matter of law,” the company said in court papers



“(Old Mutual’s) attitude was clearly one of a desire to
respect the court’s authority, and not to disregard its order.”&nbsp; 



The company has since sought further independent legal
counsel to work alongside Bowman Gilfillan.



Old Mutual denies that this was a vote of no confidence in
the Sandton based law firm, whose current score against Moyo’s lawyers , Mabuza
Attorneys in court is 4 – 1 against. 



It says the decision to seek further counsel re-enforced the
board’s commitment to the law by only acting on tested legal guidance.



Why second firing was
lawful?



Old Mutual relies on arguments made by Moyo’s counsel to
back legally its decision to fire him for the second time on August 21. 



It says the concessions made by Moyo’s legal team that it
was within its right to fire him again meant the directors could not have acted
in contempt of court.



“Mr Moyo’s senior counsel conceded explicitly that , if Mr
Moyo were to be reinstated pending the determination of Part B, there would be
nothing to stop Old Mutual from properly invoking the notice clause again, in
which case Mr Moyo would have no leg to stand on,” the company said in court
documents quoting arguments made by Advocate Thembeka Ngcukaitobi.



Moyo has&nbsp; gone ahead with Part B of his application in
which he seeks permanent reinstatement as CEO, contractual damages to the tune
of R250m and declaring the 13-member Old Mutual board as delinquent directors.



Old Mutual argues the second firing was independent of the
first and that its timing, which happened while judgment on the Section 18
application and leave to appeal process was still outstanding, could not be
perceived as being in contempt of court because it had no effect in law on the
pending court decisions.



But the insurer may face an uphill battle in proving the
independence of the second firing, if the September 23 judgement from Judge
Mashile, the presiding Judge over this matter, is anything to go by.



Judge Mashile described as “unreasonable” Old Mutual’ s
assertion that Moyo had to challenge his second firing through a separate
application, saying it would lead to duplication of the same proceedings
founded on similar facts.



“The second termination letter seeks to incorporate the 18
June 2019 termination letter, which I had ruled unlawful in my judgement of 30
July 2019,” Judge Mashile said in court documents.



“Were this court to entertain the respondents (Old Mutual’s)
assertion in this point, it would amount to piecemeal litigation resulting in
extravagant legal costs and a wastage of valuable time.”



Noticeable in Old Mutual’s court papers filed yesterday, was
the exclusion of board chair Trevor Manuel’s inference towards Judge Mashile at
a September 13 press briefing, in which he said:



“If you take a board imbued with the responsibility and
accountability and you get that overturned by a single individual who happens
to wear a robe, I think you have a bit of difficulty.”



Manuel has since apologised for his comments. Moyo’s legal
counsel are expected to use this to support their contempt of court arguments
when proceedings are heard next month.

#MoyovsOldMutual – Round 6: Why Old Mutual’s non-executives, chair are not in contempt of court

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For the third time in 2 months, Peter Moyo attempted to go back to work as CEO of the second largest insurer in South Africa. But just like two prior attempts and despite two court orders permitting him do to so, Old Mutual refused him the right. CNBC Africa’s Karabo Letlhatlha filed this report.

Moyo denied entry to Old Mutual offices for the third time

By Fifi Peters, CNBC Africa reporter and anchor



Peter Moyo plans to apply to the South Gauteng High Court to have Old Mutual’ s non-executive directors declared delinquent, he revealed to CNBC Africa. Thus pursuing Part B of his court application.



For more on the Old Mutual saga <a href="https://www.cnbcafrica.com/?s=old+mutual">click here</a>



In less than
seven days, Moyo’s deadline to pursue the second part of his legal battle with
Old Mutual, where he seeks either permanent reinstatement as CEO,
alternatively, damages for the breach of his employment contract, will lapse.



Moyo was given 60
days to pursue Part B of his application on July 30 when the High Court ruled
his suspension and subsequent firing as Old Mutual CEO was unlawful. It ordered
SA’s second largest insurer to temporarily reinstate him and blocked the
company from appointing a new CEO. The deadline to file Part B runs out at the
end of the month.



“We will be
finalising the papers soon,” said Moyo’s attorney Eric Mabuza. 



Part B also deals
with the alternative relief of compensation for the impairment to his
reputation and dignity; the breach of the protective disclosures
(whistleblowing) act and declaring all 13 remaining Old Mutual board members
and its chair, delinquent directors. 



If a director is
found to be delinquent he/she may be barred from sitting on a board for up to
seven years.



Asked why Moyo
had left it to the final hour, his attorney said: 



“We have been
distracted by the side skirmishes of Old Mutual’s contempt of court.”



Mabuza accuses Old Mutual of having been in <a href="https://www.cnbcafrica.com/zdnl-mc/2019/08/12/old-mutual-peter-moyo-to-meet-in-court-friday/">contempt of court</a> on four occasions:



On July 31st
and September 6 when the insurer blocked Moyo from returning to work, as per
the court order; 



On August 21,
when Old Mutual fired Moyo for the second time ahead of a pending court judgement




And on September
13 when Old Mutual board chair, Trevor Manuel made a derogatory comment about
the preceding Judge Brian Mashile at a press conference. Manuel said:



“If you take a
board imbued with the responsibility and accountability and you get that
overturned by a single individual who happens to wear a robe, I think you have
a bit of difficulty.” <a href="https://www.cnbcafrica.com/article/2019/09/17/sorry-judge-mashile-says-old-mutuals-trevor-manuel/">Manuel
has since apologised for his comments</a>.



Old Mutual
disagrees it has acted in contempt of court.



Its Chief of
Communications Officer Tabby Tsengiwe said the courts had yet to make a ruling
in that regard.



“That is their
assertion, there is no ruling from the court, she said.”



&nbsp;“What is being overlooked here is Old Mutual’s
board is holding a CEO accountable for paying himself a dividend when he had a fiduciary
responsibility to put Old Mutual’s interest first.”



She said the view
that the ongoing litigation which has dragged on for four months was because of
a personality clash between Moyo and Manuel, was unfortunate as this was not
the case.



“Was the board
supposed to overlook corporate governance?”



The July 31
ruling, which Old Mutual is in the process of appealing, found Moyo was fired
after making protective disclosures about Manuel. 



It also barred
the company from appointing a new CEO. 



“Due to the
importance of bringing stability and certainty for its stakeholders, Old Mutual
has argued that the appeal hearing be expedited and be heard as early as
November.”



Moyo to return to work



On Monday, the <a href="https://www.cnbcafrica.com/videos/2019/09/23/judgement-deferred-in-moyo-vs-old-mutual-court-case/">High Court accepted Moyo’s request</a> to submit his second axing on August 21 as further evidence to his existing application against Old Mutual for being in contempt of court by barring him from returning to work.



Old Mutual has ten days to file responding
papers to Moyo and arguments are expected to be heard within 30 days.



In the meantime, Moyo
has said he will be returning to work today.



His attorney says
this is to give Old Mutual the opportunity to mitigate its contempt of court.



This is Moyo’s
third attempt to get access to his corner office, which Old Mutual plans to prevent
once again.



“He is not
permitted nor is he required to return to work, as the second notice of
termination given to him on August 21 remains valid and its validity hasn’t
been challenged.”



But papers served
on Monday signal Old Mutual may once again be found wanting. 



Judge Mashile
described as “unreasonable” Old Mutual’ s assertion that Moyo had to challenge
his second firing through a separate application, saying it would lead to
duplication of the same proceedings founded on similar facts.



Moreover, he found that Old Mutual’s
second firing of Moyo was similar to the first, which he ruled as unlawful.



“The second termination letter seeks to
incorporate the 18 June 2019 termination letter, which I had ruled unlawful in
my judgment of 30 July 2019,”



“Were this court to entertain the respondents
(Old Mutual’s) assertion in this point, it would amount to piecemeal litigation
resulting in extravagant legal costs and a wastage of valuable time.”

Peter Moyo to go ahead with application to have Old Mutual’s non-executive directors declared delinquent

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Old Mutual may be up for its toughest fight yet in its ongoing litigation with Peter Moyo. It has to proven why it and its 13 non-executive directors should not be found in contempt of court for blocking Moyo from returning to work as per the court, and insulting Judge Brian Mashile. Failure to do so carries serious ramifications including possible jail time. Peter Moyo and his attorney Eric Mabuza join CNBC Africa for more.

Why Old Mutual’s biggest shareholder met with Moyo

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Old Mutual will have to argue why it’s second firing of Peter Moyo&#8217;s is not further contempt of court and why its board members shouldn&#8217;t pay for their own legal costs. The next court date is yet to be announced. Here is what Old Mutual&#8217;s chief of communications Tabby Tsengiwe had to say after the judgement was delivered as well as what Peter Moyo, who is fighting for his job back, also commented on long standing board member, Pinky Moholi&#8217;s sudden resignation from Old Mutual&#8217;s board last week.

Judgement deferred in Moyo vs Old Mutual court case

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Business lobby group, the Black Management Forum says Old Mutual should apologise for insulting a High Court Judge Mashile; CNBC Africa is joined by BMF President, Andile Nomlala for more.

Old Mutual must apologise to judge Mashile – BMF

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Old Mutual has stopped additional legal action against axed CEO Peter Moyo as it hopes to de-escalate the court case which has prevailed for three months. Old Mutual Chairman, Trevor Manuel spoke to CNBC Africa’s Kopano Gumbi about insurer’s ongoing dispute with Moyo.

Old Mutual Chair Trevor Manuel opens up on Peter Moyo

Old Mutual which earlier held a <a href="https://www.cnbcafrica.com/videos/2019/09/13/old-mutual-chair-trevor-manuel-opens-up-on-peter-moyo/">press conference with its Chairman Trevor Manue</a>l and several board members on the ongoing Peter Moyo court case has approached Moyo&#8217;s attorneys, Mabuza Attorneys stating it intention to halt further court proceedings relating to Moyo’s second letter of termination.



WATCH: <a href="https://www.cnbcafrica.com/videos/2019/09/13/old-mutual-chair-trevor-manuel-opens-up-on-peter-moyo/">Old Mutual Chair Trevor Manuel opens up on Peter Moyo saga</a> 



In an emailed statement to CNBC Africa, clarifying the letter, Old Mutual said that it &#8220;has certainly not &#8216;backed down&#8217; from its ongoing appeal process against an earlier judgement handed down in the High Court in the matter.&#8221;



<a href="https://www.cnbcafrica.com/?s=old+mutual">For the latest on #OldMutualvsMoyo click here</a>



Adding &#8220;it has not in the letter, nor in any other way, said it is not pursuing its appeal against the judgement handed down by Judge Mashile on July 30. Old Mutual was granted leave to appeal by the High Court a week ago and is indeed in the process of filing the requisite papers relating to that appeal&#8221;. 



READ: <a href="https://www.cnbcafrica.com/news/special-report/2019/09/09/how-old-mutual-could-have-avoided-a-costly-legal-battle-with-peter-moyo/">How Old Mutual could have avoided a costly legal battle with Peter Moyo</a>



In the letter sent to Mabuza Attorneys by Old Mutual&#8217;s lawyers Bowmans, it says: 



&#8220;Our client [Old Mutual] has since reconsidered its stance. 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. Our client considers that both parties should seek to avoid further proceedings that would not serve to resolve the central issues that exist between them, which concern whether or not your client’s employment has been validly terminated, either by the first or the second notice.&#8221; 



It further states that it is aware that Moyo wants to offer his services but it is not necessary for him to do so at the workplace:



&#8220;Insofar as your client [Moyo] has stated that he considers himself obliged to tender his services, our client acknowledges that he has tendered his services and that he continues to do so. He is not required to be present at the workplace to do so. 7. 



&#8220;Our client urges your client to accept that, in the prevailing circumstances and while awaiting the judgment of Mashile J, the interests of the company are not served by him attending at the workplace, with or without a press entourage, which may cause uncertainty and generate adverse publicity for our client.&#8221; 



Old Mutual and Moyo have been at loggerheads since May after South Africa&#8217;s second largest insurer suspended him as CEO and later fired him due to a <a href="https://www.cnbcafrica.com/zdnl-mc/2019/05/24/old-mutual-suspends-ceo-share-price-tumbles/">material breakdown in their relationship</a> relating to how Moyo managed his conflict of interest with NMT Capital, a company in which he was a shareholder.



Moyo alleges he was fired for raising <a href="https://www.cnbcafrica.com/zdnl-mc/2019/08/12/old-mutual-peter-moyo-to-meet-in-court-friday/">a triple conflict of interest in relation to Manuel</a> <a href="https://www.cnbcafrica.com/zdnl-mc/2019/08/12/old-mutual-peter-moyo-to-meet-in-court-friday/">.</a>

Old Mutual halts further litigation against Peter Moyo, but not backing down

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Sacked CEO Peter Moyo arrived back at work at Old Mutual here in Sandton in compliance with a court victory last week only to be to be told for the second time in a matter of weeks that he can’t do so. Old Mutual fired Moyo back in June for what it called a conflict of interest and a loss of trust. Moyo denies this and wants to fight through the courts to get his job back. CNBC Africa&#8217;s Fifi Peters reports.

Moyo attempts to return to work – take two

By Fifi Peters and Monique Vanek



Old Mutual could have avoided its costly legal battle with sacked CEO Peter
Moyo if it had explored more options to manage the conflict of interest with Moyo
and his company NMT Capital – the issue at the heart of the dismissal. Court
papers claim Old Mutual could have taken advantage of its preference share
subscription (PSS) agreement with the investment company, formerly known as
Amabubesi, which could have circumnavigated the dispute. 



Preference share
subscription agreement &nbsp;



The means were there according to court papers. In 2004/2005 when Old
Mutual, as part of its <a href="https://www.oldmutual.com/docs/default-source/investor-relations-files/plc/reports/2004/2004-old-mutual-annual-report.pdf?sfvrsn=dc1cf217_6">black
economic empowerment objectives</a>, became a 20 per cent
shareholder in NMT Capital it ensured that it contractually protected itself over
its R46 million preference share capital funding to the investment company.



Court documents show that under this preference share subscription (PSS)
agreement, no dividends were allowed to be paid on ordinary shares if the
preference share debt had not been settled. This issue was at the centre of the
conflict of interest argument. 



The PSS agreement also provided Old Mutual with the option to convert
the preference shares into fully paid ordinary shares of equivalent value if
NMT Capital failed to repay the preference share funding by the redemption
date.&nbsp; 



Another option was that the PSS agreement allowed South Africa’s second largest insurer to receive interest on all amounts owing, if the preference dividend was not paid, once the company had redeemed the preference shares. 



Instead, Old Mutual agreed to redemption extensions in 2010, 2013 and 2017. In 2018 the company requested another extension. According to a <a href="https://www.nmtcapital.co.za/index.php/newsroom/clarification-sens-statement-dated-18-june-2019-issued-old-mutual">statement from NMT Capital</a> it entered into talks with Old Mutual over the redemption extension with little success. 



In the statement the majority black owned investment company claims:



“NMT Capital had started discussions with Old Mutual aimed at extending
the redemption date of the preference shares. There was also a proposal sent to
that effect. These discussions were ongoing and Old Mutual was aware at that
stage that NMT Capital did not intend to redeem the preference shares but
preferred an extension of the redemption date.



“For its part, NMT Capital has on several occasions made attempts to
meet with Old Mutual representatives to iron out these issues towards finding
common ground. This includes a meeting with the Chairman of Old Mutual, Mr.
Trevor Manuel, which took place on the 30th of May 2018.”



The background to all of this tells its own story. Instead of Old Mutual
taking up the options made available to it, through the PSS agreement, it fired
Moyo in June 2019, mainly, for his role in chairing an NMT Capital annual
meeting on June 4 2018.At this meeting the black economic empowerment group
approved the payment of ordinary dividends ahead of settling its preference
share debt payments. 



Old Mutual said it held three sub-committee meetings to discuss the NMT
matters prior to firing Moyo. 



Moyo claims the board was driven by improper motives when firing him and
that his dismissal followed protective disclosures he made about Manuel. The High
Court ruled in favour of Moyo’s version of events on July 30. He is expected
back at work for the second time since the sacking this morning after winning
yet another court battle last week. 



In his founding judgement, presiding Judge Brian Mashile said:



&nbsp;“The Respondents (Old Mutual)
would let this court believe that the issue concerning the Applicant’s (Moyo)
conflict of interest arose well before he made the disclosures. In short this
is factually misguided. The Respondents might have been holding meetings as
early as January 2019 but it was not until retrieval of certain documents from
archives of NMT during or at the end of April that they learned of the alleged
conflict. The discovery of the alleged conflict therefore came after the disclosures.
For this reason, the connection is apparent – disclosure followed by alleged
conflict and then occupational detriment.”



Old Mutual did not respond to questions about why it approved NMT’s
redemption extensions several times. Also, questions as to why it did not take
up its options to convert the then outstanding preference debt from NMT into
ordinary dividends. Nor did it respond to questions on why the May 2018 talks
failed to reach a settlement and whether Moyo knew this.



Conflict of interest
options 



Aside from the PSS agreement, Old Mutual had other options to deal with
Moyo’s conflict of interest, according to court papers.



They include: an independent disciplinary hearing; asking Moyo to resign
as a director from the NMT Group; divesting his interests in the company into a
blind trust, or as a last resort, arbitration.



The job of managing any conflict appears to be at Manuel’s door.



“Any conflict of interest resulting from the executive’s position as
non-executive director of NMT will be dealt with by the chairperson of the
company and/or in terms of clause 25.2 of the executive’s employment contract,”
the contract says. 



Section 25.2 suggests arbitration by a private firm to resolve an
impasse that would normally be handled by The Commission for Conciliation,
Mediation and Arbitration. 



When asked why Manuel did not use all the options available to him to
manage Moyo’s conflict, Old Mutual did not comment. In response to a question
about why it invested in NMT Capital and the Group to start with, Old Mutual’s
chief of communications, Tabby Tsengiwe said:



“The history of
Old Mutual’s NMT investment is not relevant.&nbsp; Old Mutual’s concerns relate
to subsequent management by Mr Moyo of his conflict of interest with NMT and
among others, that ordinary dividends were paid out while OM&nbsp;[Old Mutual] should
have been paid first as a preferential shareholder.”



Following the litigation and hullabaloo over the payment of the
preference share debt NMT Capital has settled the preference share loan it
received. Asked how much the holding company NMT Group still owes, <a href="https://www.cnbcafrica.com/videos/2019/09/03/old-mutual-on-results-zimbabwe-litigation/">Old
Mutual acting CEO, Iain Williamson</a> said the insurer’s
exposure was around R290m.Old Mutual has said it is negotiating to exit this
investment.

How Old Mutual could have avoided a costly legal battle with Peter Moyo

By Fifi Peters, CNBC Africa reporter and anchor 



If you thought the legal feud between<a href="https://www.cnbcafrica.com/?s=old+mutual"> Old Mutual and its former CEO Peter Moyo</a> was far from over, you are right. Legal court papers filed by Moyo on Tuesday in response to Old Mutual’s decision to fire him twice will likely delay a court verdict that was expected to clarify whether or not he can return to work as CEO.



That
judgment, along with Moyo’s application to find <a href="https://www.cnbcafrica.com/zdnl-mc/2019/08/12/old-mutual-peter-moyo-to-meet-in-court-friday/">Old
Mutual’s board in contempt of court</a>, was supposed to be delivered this week
but it’s now unlikely to happen until next month.



In papers
seen by CNBC Africa, Moyo has asked the High Court and presiding Judge Brian
Mashile to consider new developments that transpired after the <a href="https://www.cnbcafrica.com/videos/2019/08/16/judgment-reserved-for-2-weeks-in-moyo-vs-old-mutual-case/">August
16 faceoff between himself and Old Mutual</a> at the South Gauteng High Court
in Johannesburg.



These
developments relate to Old Mutual’s decision to jump the gun by <a href="https://www.cnbcafrica.com/zdnl-mc/2019/08/22/old-mutuals-attempt-to-terminate-peter-moyos-contract-for-second-time-is-corporate-madness-lawyer/">publishing
an open letter to its shareholders</a> to update them about the litigation
ahead of Judge Mashile’s pending verdict.



In the open
letter released August 21, Old Mutual re-affirmed its position that trust and
confidence in Moyo had broken down and that a future working relationship with
him was “untenable”.



Old Mutual
also announced its decision to further terminate Moyo’s employment contract on
legal advice that it was in its ambit to do so.



In his
latest affidavit, Moyo argues these actions are further evidence of Old
Mutual’s contempt of court and disregard for the rule of law.



“I seek to
introduce this letter in order for the court to take it in evaluating my
existing application against Old Mutual for the finding of contempt of court,
including in respect of the individual directors,” Moyo said.



“The latest
contempt of court must be viewed as a continuation of the ongoing contemptuous
conduct of the respondents,” he added, which he will seek in a further application
to be declared delinquent directors.



Moyo has
also asked the court to direct the board to pay their own legal costs to stop
them abusing company monies by drawing him into endless litigation



“I submit
that a case exists for the court to consider directing the individual members
of the board to pay the costs of these proceedings personally. Their conduct
does not promote the interest of shareholders,” he said.



Up until
now, it’s been unclear how Old Mutual could legally fire someone they had
already fired.



But Moyo’s
court papers reveal what legal leg they could have been acting on.



“…during
arguments, my counsel submitted that the effect of the judgement, on the
contracting findings, was to restore the contractual relationship between the
parties,” Moyo said.



The
judgement above refers to the July 31st ruling in which Judge
Mashile found Old Mutual’s dismissal of Moyo unlawful and ordered he be
temporarily reinstated as CEO, which the company is appealing.



Even though
Judge Mashile’s order restored the employment contract, Moyo argues that “it
did not have the effect of taking away the contractual rights of Old Mutual.”
This includes Moyo’s right to a disciplinary hearing to defend purported
allegations of misconduct.



Old Mutual
has strongly denied Moyo’s allegation that the board has acted in further
contempt of court and maintains that the first and second dismissal are above
board, despite the court judgement.



In an
emailed response to Moyo’s attorney Eric Mabuza dated August 22,&nbsp;Chris
Todd, Head of Legal at Bowmans, the counsel for Old Mutual writes:



“Your
allegation that the further notice of termination constitutes an act of
contempt of court is strongly denied. It has at all times been clear, from the
terms of the judgement of Mr Justice Mashile and from the submissions of your
clients’ counsel, that our client is entitled to give notice (and indeed, to
give further notice) under his employment contract.



“If your
client persists, despite this, in contending that the further notice is an act
of contempt of court, that contention is any event clearly irrelevant to (Old
Mutual’s) application for leave to appeal…in which argument has been completed
and judgement reserved,” said Todd in the emailed response.



The two
parties are expected to present their cases at the High Court on September 3, a
day after Old Mutual releases its interim results.

As Peter Moyo files new court papers, where to next in the #OldMutualvsMoyo saga?

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Former Old Mutual CEO Peter Moyo has lodged an urgent application for the board and its chairperson to be found to have interfered in the functioning of the courts and wants them to pay costs in their personal capacity.

Peter Moyo files urgent application to have Old Mutual board declared in breach of constitution

By Fifi Peters, CNBC Africa anchor and reporter 



In a surprising turn of events, Old Mutual has again terminated the employment of Peter Moyo as CEO, saying it was in the best interests of the company and its shareholders for the relationship to come to an end. This was revealed in an <a href="https://www.oldmutual.com/investor-relations/open-letter-to-shareholders">open letter to shareholders</a>.



<a href="https://www.cnbcafrica.com/videos/2019/08/22/old-mutual-fires-peter-moyo-again/">Speaking on CNBC Africa’s Power Lunch show</a>, Old Mutual’s Head of Communications Tabby Tsengiwe said “the decision was taken to provide clarity and certainty for the market.” 



For full coverage of Peter Moyo vs Old Mutual visit <a href="https://www.cnbcafrica.com/?s=old+mutual">https://www.cnbcafrica.com/?s=old+mutual</a> 



Startled by the announcement, Moyo’s attorney, Eric Mabuza of Mabuza Attorneys questioned which contract the financial services firm was terminating as the termination of the previous contract was <a href="https://www.cnbcafrica.com/zdnl-mc/2019/07/30/judge-orders-peter-moyo-to-be-reinstated-as-ceo-of-old-mutual/">found unlawful </a>by the High Court last month.



In the <a href="https://www.oldmutual.com/investor-relations/open-letter-to-shareholders">open
letter to shareholders</a> Old Mutual said it was responding to mounting
pressure from investors that it address the ongoing litigation in its
boardroom, which has coincided with a 17% drop in its share price on the JSE. 



The insurer said it had informed Moyo of its decision to further terminate his employment and outlined its reasons for doing so in the open letter:



“This step, as with previous steps taken in relation to Mr Moyo, has been taken after legal advice and on careful reflection by directors, with proper regard to their fiduciary duties to the company.”



But Mabuza described the company’s actions as “corporate madness,”
adding that it was clear the directors were protecting their own interests and
not those of the company.



“They can’t even wait for the outcome of the court judgment,” said
Mabuza.



“Things can’t go on like this. Someone must intervene and save Old
Mutual from itself, its directors and itself,” he said.



Last month, the High Court ordered Old Mutual to reinstate Moyo as
CEO and blocked the company from finding a new CEO, saying the manner in which
it had terminated his contract breached its own disciplinary codes. 



Old Mutual, which launched an urgent appeal to challenge the court order, said it disagreed with the court’s decision that it was supposed to give Moyo a disciplinary hearing before firing him.&nbsp;



“We respectfully disagree, both because we do not believe that the contract required this and because we believe that a fair and appropriate process was followed before notice was given,” the the financial services giant said in the open letter.



“It will remain important to finally resolve the dispute about the validity of the June notice of termination. However, irrespective of what might eventually happen in those legal proceedings, events following the <a href="https://www.cnbcafrica.com/zdnl-mc/2019/06/18/old-mutual-terminates-ceos-contract-share-price-jumps/">June notice</a> have made it clear that a continued employment relationship between Mr Moyo and Old Mutual is untenable,” it added



Old Mutual fired Moyo on June 18 after the board lost trust and confidence in his leadership following his <a href="https://www.cnbcafrica.com/zdnl-mc/2019/05/24/old-mutual-suspends-ceo-share-price-tumbles/">non-disclosure of a conflict of interest related to NMT Capital</a>, the investment firm co-founded by Moyo in which Old Mutual owns a 20% stake.



The board accused Moyo of not acting in the best interests of the
company by chairing an NMT meeting and overseeing the declaration and payment
of dividends to shareholders, including himself, when NMT still had preference
share debt owed to Old Mutual.



Moyo has maintained that his firing was related to whistleblowing
on board chair, Trevor Manuel’s triple conflict of interest during the managed
separation from London parent, Old Mutual Plc as well as the non-disclosure to
shareholders that the company footed Manuel’s legal bills.



In the open letter, the company addressed the contentions
matters relating to the board chair. 



“Old Mutual wanted to ensure that all steps taken in the
litigation were aligned with protecting its business objectives together with
its brand and reputation,” it said, explaining why the payment of Manuel’s
legal fees were not disclosed to shareholders.



&nbsp;“The Board Chair’s relationship with Rothschild and Old
Mutual Plc were known and were disclosed and managed as required by United
Kingdom and South African laws and regulations and corporate governance best
practice.”



The High Court&#8217;s decision on Old Mutual&#8217;s application for leave to appeal, clarity on whether Moyo can return to work before the appeal is heard as well as Moyo&#8217;s counter application for the company and directors to be found in <a href="https://www.cnbcafrica.com/zdnl-mc/2019/08/12/old-mutual-peter-moyo-to-meet-in-court-friday/">contempt of court</a>, is expected <a href="https://www.cnbcafrica.com/videos/2019/08/16/judgment-reserved-for-2-weeks-in-moyo-vs-old-mutual-case/">next Friday, August 30</a>.

Old Mutual’s attempt to terminate Peter Moyo’s contract for second time is “corporate madness” – lawyer

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To continue the uphill battle of office between Old Mutual and axed CEO Peter Moyo, the company has given further notice to Mr Moyo to terminate his employment. Tabby Tsengiwe, Chief Communications Officer at Old Mutual Group joins CNBC Africa for more.

Old Mutual fires Peter Moyo, again

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Old Mutual and Peter Moyo have headed to court for round two today over whether Moyo can be reinstated as CEO with immediate effect after a pending appeals process. CNBC Africa’s Fifi Peters provides an update on the case.

Peter Moyo

PIC weighs in on Old Mutual

Old Mutual seeks clarity from court on what work Peter Moyo should be allowed to do

#MoyovsOldMutual – Round 6: Why Old Mutual’s non-executives, chair are not in contempt of court

Moyo denied entry to Old Mutual offices for the third time

Peter Moyo to go ahead with application to have Old Mutual’s non-executive directors declared delinquent

Why Old Mutual’s biggest shareholder met with Moyo

Judgement deferred in Moyo vs Old Mutual court case

Old Mutual must apologise to judge Mashile – BMF

Old Mutual Chair Trevor Manuel opens up on Peter Moyo

Old Mutual halts further litigation against Peter Moyo, but not backing down

Moyo attempts to return to work – take two

How Old Mutual could have avoided a costly legal battle with Peter Moyo

As Peter Moyo files new court papers, where to next in the #OldMutualvsMoyo saga?

Peter Moyo files urgent application to have Old Mutual board declared in breach of constitution

Old Mutual’s attempt to terminate Peter Moyo’s contract for second time is “corporate madness” – lawyer

Old Mutual fires Peter Moyo, again

Judgment reserved for 2 weeks in Old Mutual vs Moyo case

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Peter Moyo

PIC weighs in on Old Mutual

Old Mutual seeks clarity from court on what work Peter Moyo should be allowed to do

#MoyovsOldMutual – Round 6: Why Old Mutual’s non-executives, chair are not in contempt of court

Moyo denied entry to Old Mutual offices for the third time

Peter Moyo to go ahead with application to have Old Mutual’s non-executive directors declared delinquent

Why Old Mutual’s biggest shareholder met with Moyo

Judgement deferred in Moyo vs Old Mutual court case

Old Mutual must apologise to judge Mashile – BMF

Old Mutual Chair Trevor Manuel opens up on Peter Moyo

Old Mutual halts further litigation against Peter Moyo, but not backing down

Moyo attempts to return to work – take two

How Old Mutual could have avoided a costly legal battle with Peter Moyo

As Peter Moyo files new court papers, where to next in the #OldMutualvsMoyo saga?

Peter Moyo files urgent application to have Old Mutual board declared in breach of constitution

Old Mutual’s attempt to terminate Peter Moyo’s contract for second time is “corporate madness” – lawyer

Old Mutual fires Peter Moyo, again

Judgment reserved for 2 weeks in Old Mutual vs Moyo case

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