By Fifi Peters, CNBC Africa anchor and reporter 



Old Mutual has won its case against its axed CEO Peter Moyo.



The protracted legal feud between insurance company Old Mutual, and its former Moyo resumed this morning where a full bench of judges delivered their verdict on whether the axed CEO can or cannot get his job back.



<blockquote class="twitter-tweet"><a href="https://twitter.com/hashtag/BREAKING?src=hash&amp;ref_src=twsrc%5Etfw">#BREAKING</a>: Old Mutual&#39;s head of Communications, Tabby Tsengiwe emotional after court overturns Judge Mashile&#39;s decision to reinstate Peter Moyo as CEO <a href="https://twitter.com/hashtag/OldMutualvsMoyo?src=hash&amp;ref_src=twsrc%5Etfw">#OldMutualvsMoyo</a> <a href="https://twitter.com/cnbcafrica?ref_src=twsrc%5Etfw">@cnbcafrica</a> <a href="https://t.co/WcG0vpn0iL">pic.twitter.com/WcG0vpn0iL</a>&mdash; Fifi Peters (@FifiPeters) <a href="https://twitter.com/FifiPeters/status/1216998234138271745?ref_src=twsrc%5Etfw">January 14, 2020</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>



<blockquote class="twitter-tweet">Old Mutual says its victory in court today means its free to look for a permanent CEO. Hear the company&#39;s official statement <a href="https://twitter.com/hashtag/OldMutualvsMoyo?src=hash&amp;ref_src=twsrc%5Etfw">#OldMutualvsMoyo</a> <a href="https://twitter.com/cnbcafrica?ref_src=twsrc%5Etfw">@cnbcafrica</a> <a href="https://t.co/YNEObnHbiW">pic.twitter.com/YNEObnHbiW</a>&mdash; Fifi Peters (@FifiPeters) <a href="https://twitter.com/FifiPeters/status/1217005842106605568?ref_src=twsrc%5Etfw">January 14, 2020</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>



<blockquote class="twitter-tweet">Peter Moyo&#39;s says he is disappointed with the court outcome that has declared his firing as Old Mutual CEO as lawful. Indicates he may appeal the verdict. Listen to official statement. <a href="https://twitter.com/hashtag/oldmutualvsmoyo?src=hash&amp;ref_src=twsrc%5Etfw">#oldmutualvsmoyo</a> <a href="https://twitter.com/cnbcafrica?ref_src=twsrc%5Etfw">@cnbcafrica</a> <a href="https://t.co/C6vE9TEY5j">pic.twitter.com/C6vE9TEY5j</a>&mdash; Fifi Peters (@FifiPeters) <a href="https://twitter.com/FifiPeters/status/1217011027432419328?ref_src=twsrc%5Etfw">January 14, 2020</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>



The crux of the court case centres around whether Old Mutual followed its own contractual procedures when firing Moyo.



Today’s court appearance follows Old Mutual’s decision to <a href="https://www.cnbcafrica.com/videos/2019/12/04/why-old-mutual-is-appealing-moyos-reinstatement-as-ceo/">appeal</a> an initial court ruling in <a href="https://www.cnbcafrica.com/news/southern-africa/2019/07/30/peter-moyo-am-back-at-work-tomorrow-as-court-reinstates-him-as-old-mutuals-ceo/">July last year</a> that declared the insurer’s&nbsp; firing of Moyo as unlawful and ordered for his temporary reinstatement. 



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



This will be the first time the two parties meet at the South Gauteng court in Johannesburg this year, following several appearances in 2019 after Old Mutual <a href="https://www.cnbcafrica.com/zdnl-mc/2019/05/24/old-mutual-suspends-ceo-share-price-tumbles/">suspended Moyo in May</a> and <a href="https://www.cnbcafrica.com/zdnl-mc/2019/06/18/old-mutual-terminates-ceos-contract-share-price-jumps/">fired him in June</a> over allegations of gross misconduct and a breakdown in trust and confidence. 



The
relationship breakdown stemmed from Moyo allegedly not acting in the insurer’s
best interest by pocketing a dividend, worth millions, from NMT Capital &#8211;&nbsp; ahead of the investment firms payout of
preference dividends owed to Old Mutual. 



Moyo
says he was fired following a fallout with board chair, Trevor Manuel after
making protected disclosures about his use of company monies to foot his legal
bills, without telling shareholders, and Manuel’s triple conflict of interest
during the insurer’s managed separation from its London parent.



The
decision is likely to impact investor sentiment towards the stock, which has
been soured by the protracted legal action as well as South Africa’s ailing
economy which has dampened consumer confidence.



On Monday, Old Mutual’s share price closed at R19.07 on the JSE, down more than 16% year on year. It share price shot up over 3 per cent on the news to R19.71.

Old Mutual wins case against axed CEO Peter Moyo

Old Mutual, its 13 non-executive directors and Chairman Trevor Manuel want Judge Mashile to recuse himself from a <a href="https://www.cnbcafrica.com/videos/2019/10/16/peter-moyo-responds-to-old-mutual-papers/">contempt of court </a>application brought against the insurer by its ousted CEO Peter Moyo for which if successful he wants the board members to serve jail time.



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



The insurer&#8217;s head of legal Craig Mcleod alleges that the judge is biased. It has requested another judge, judges or the Director of Public Prosecutions to hear the case. 



In an emailed statement Old Mutual also revealed that the Deputy Judge President of the South Gauteng High Court has set an accelerated timetable for the appeal against the high court judgement which <a href="https://www.cnbcafrica.com/zdnl-mc/2019/07/30/judge-orders-peter-moyo-to-be-reinstated-as-ceo-of-old-mutual/">temporarily reinstated Moyo as CEO</a>. The appeal will be heard on 4 December 2019. 



Developing story&#8230;

Old Mutual calls on Judge Mashile to recuse himself from contempt hearing

Old Mutual&#8217;s Managing Director* of Personal Finance Karabo Morule has resigned, a month after Pinky Moholi did.



Morule stepped down with effect from October 18, 2019 for personal reasons. &#8220;She will remain in her role for three months to assist with the transition to an internal successor,&#8221; the insurer said in a statement.



Old Mutual is currently in a <a href="https://www.cnbcafrica.com/?s=old+mutual">court battle</a> with its ousted CEO Peter Moyo, who seeks reinstatement after being fired in June. Moyo also wants the South Gauteng High Court to find Chairman Trevor Manuel and 13 board members to be in <a href="https://www.cnbcafrica.com/zdnl-mc/2019/10/09/old-mutual-seeks-clarity-from-court-on-what-work-peter-moyo-should-be-allowed-to-do/">contempt of court </a>for twice firing him as CEO and thrice barring him from returning to his corner office at the Sandton-based insurance company, after the <a href="https://www.cnbcafrica.com/zdnl-mc/2019/07/30/judge-orders-peter-moyo-to-be-reinstated-as-ceo-of-old-mutual/">court ruled in his favour</a>. 



Contempt of court carries with it a fine or a jail sentence, <a href="https://www.cnbcafrica.com/videos/2019/10/16/peter-moyo-responds-to-old-mutual-papers/">Moyo wants the latter to be imposed</a> on the board members.



The board members are arguing that they are <a href="https://www.cnbcafrica.com/zdnl-mc/2019/10/08/why-old-mutuals-non-executives-chair-are-not-in-contempt-of-court/">not in contempt</a>.



When Morule was asked at the insurer&#8217;s results presentation last month what impact the litigation was having on the personal finance business, see what she had to <a href="http:// https://twitter.com/FifiPeters/status/1168440250487771136?s=20 ">say here</a>. 



*Correction made to Karabo Morule title in both intro and headline. She was not a board member but an executive at Old Mutual

Old Mutual Personal Finance MD resigns

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

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

Statement from Trevor Manuel, Chairman of Old Mutual 



Tuesday, 17 September 2019 Mr Trevor Manuel, Chairman of Old Mutual’s board of directors, apologises unreservedly for the following observation he made at the Old Mutual media conference on 13 September 2019, in the context of the pending litigation with the former CEO, Mr Peter Moyo:



“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 a difficulty.”



Mr
Manuel commented:



“My unguarded observation, although withdrawn, has understandably caused discomfort for which I apologise unreservedly, to the honourable judge presiding and to my fellow South Africans. It was never my intention to show disrespect to the learned judge or his judgement.  I accept that my language was wholly inappropriate to express my disagreement with the decision and sincerely regret the manner in which I did so. My respect for the judiciary is unshaken and rooted in our sound legal process where all voices are heard with remedies available to address differences of legal position. I support the Board of Old Mutual’s efforts to make full use of the appeal process available to Old Mutual to state its case before the Full Court of the Gauteng Local Division of the High Court.  I remain fully committed to the integrity of the judiciary, and to the Constitutional value of the independence of our judiciary.”

“Sorry Judge Mashile” says Old Mutual’s Trevor Manuel

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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

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?

Old Mutual plans to appeal the South Gauteng High Court judgement to temporarily reinstate Peter Moyo as CEO, who was <a href="https://www.cnbcafrica.com/videos/2019/06/20/old-mutuals-moyo-sacked-for-deteriorating-relationship-with-trevor-manuel-lawyer/">fired in June</a> and to put a halt on any decision to replace him. It also ordered the insurer and respondents to pay costs. 



Judge Adams ruled that Moyo&#8217;s suspension and dismissal were unlawful. 



WATCH: <a href="https://www.cnbcafrica.com/videos/2019/07/30/peter-moyo-am-back-at-work-tomorrow-as-court-reinstates-him-as-old-mutuals-ceo/">This is what Peter Moyo had to say on his reinstatement</a>



In a statement sent to CNBC Africa, Old Mutual said: &#8220;the filing of the appeal will suspend the operation of the court order. Mr Moyo has been informed that he is not required or permitted to resume his duties, pending the outcome of the appeal proceedings. 



Old Mutual maintains that the urgent application by Mr Moyo was ill-conceived, contained a number of false allegations, and should have been dismissed.  While the company respects the Court and its processes, it now plans to appeal to a higher Court to argue that it acted lawfully when it terminated Mr Moyo’s employment.  The company has maintained throughout that it followed sound governance principles when it took this step, and that it gave valid notice under Mr Moyo’s employment contract.



&#8220;The directors of the company are resolute that they have at all times acted in keeping with their fiduciary responsibilities to the company and its shareholders, policyholders, staff and other stakeholders. Old Mutual is clear that there has been a complete and irreparable breakdown in trust and confidence in Mr Moyo.  The company is optimistic that it will be successful on appeal and that another Court will come to a different conclusion.  Until then, the business continues as usual under the stewardship of the highly experienced Iain Williamson as interim CEO, supported by a competent and focused leadership team.&#8221;



Moyo, took the 174 year Old Mutual and its current Chairperson Trevor Manuel, to court, for unfair dismissal. It is a legal battle that could have far reaching implications for corporate South Africa.



Moyo was suspended as CEO in May after the insurance group said there had been a&nbsp;<a href="https://www.cnbcafrica.com/zdnl-mc/2019/05/24/old-mutual-suspends-ceo-share-price-tumbles/">material breakdown of trust and confidence</a>. This related to a company Moyo co-founded, in 2002, NMT Capital, in which Old Mutual was a significant investor. The company asserts that Moyo put the interests of NMT before those of Old Mutual, something he was contractually not allowed to do.



“For Corporate South Africa it could mean that even the slightest conflict of interest is taken a lot more seriously than it currently is,” says Morris Mthombeni, a corporate governance expert and lecturer at GIBS. Mthombeni says it appears Moyo has taken quite a drastic measure in filing such serious charges against Old Mutual and its board. Moyo claims the board of Old Mutual did not follow due process in releasing him and has asked the courts to reinstate him as CEO. He is also requesting that the chairman and directors be declared “delinquent directors.”



“Unfortunately the board and Mr Moyo have disagreed materially on how the conflict of interest has been managed,” counters Old Mutual.



Old Mutual bought 20 percent of NMT Capital for R200 million, in 2002, as part of its transformation agenda. This initial investment was split between ordinary shares, preference shares and private equity.



As a preference shareholder, Old Mutual is entitled to be paid dividends first, but Moyo insists this is a right they often waived.



“In practice and since 2010, the redemption of Old Mutual preference dividends has been deferred or “rolled over” by agreement for a continuous period of almost a decade to date,” said Moyo in his application to the South Gauteng High Court.



Instead, Moyo believes his alleged victimisation is a result of him raising concerns about what he says is a conflict of interest for Old Mutual chairman and former minister of finance&nbsp;<a href="https://www.cnbcafrica.com/videos/2019/05/24/trevor-manuel-sheds-light-on-the-suspension-of-old-mutual-ceo/">Trevor Manuel</a>. This, he claims, relates to the split of Old Mutual UK from the South African business, where Rothschild, another company&nbsp; Manuel is chairman of, were the lead advisers for a small fortune in advisory fees.&nbsp;



This, as well as an undisclosed payment of Manuel’s legal fees, amount to what Moyo terms a “triple conflict.”



Old Mutual rejects Moyo’s claims without reservation and intends to rebut them in court.



The escalation of this high profile disagreement to the courts raises an interesting set of questions around corporate governance and practitioners are sure to watch this closely.



Mthombeni says although this is not a watershed moment in corporate&nbsp; governance in South Africa, “it will show if we give lip service to conflicts of interest.”

Old Mutual to appeal court ruling to reinstate Peter Moyo as CEO

By Kopano Gumbi, CNBC Africa reporter 



A battle of giants is set for Tuesday, 16 July
in the South Gauteng High Court in Johannesburg. Peter Moyo, long standing and
respected executive, is taking the 174 year Old Mutual and its current Chairperson
Trevor Manuel, to court, for unfair dismissal. It is a legal battle that could
have far reaching implications for corporate South Africa. 



Moyo was suspended as CEO in May after the
insurance group said there had been a <a href="https://www.cnbcafrica.com/zdnl-mc/2019/05/24/old-mutual-suspends-ceo-share-price-tumbles/">material
breakdown of trust and confidence</a>. This related to a company Moyo
co-founded, in 2002, NMT Capital, in which Old Mutual was a significant
investor. The company asserts that Moyo put the interests of NMT before those
of Old Mutual, something he was contractually not allowed to do.



“For Corporate South Africa it could mean that
even the slightest conflict of interest is taken a lot more seriously than it
currently is,” says Morris Mthombeni, a corporate governance expert and
lecturer at GIBS. Mthombeni says it appears Moyo has taken quite a drastic
measure in filing such serious charges against Old Mutual and its board. Moyo
claims the board of Old Mutual did not follow due process in releasing him and
has asked the courts to reinstate him as CEO. He is also requesting that the
chairman and directors be declared “delinquent directors.” 



“Unfortunately the board and Mr Moyo have
disagreed materially on how the conflict of interest has been managed,”
counters Old Mutual.



Old Mutual bought 20 percent of NMT Capital
for R200 million, in 2002, as part of its transformation agenda. This initial
investment was split between ordinary shares, preference shares and private
equity.



As a preference shareholder, Old Mutual is
entitled to be paid dividends first, but Moyo insists this is a right they
often waived.



“In practice and since 2010, the redemption of
Old Mutual preference dividends has been deferred or “rolled over” by agreement
for a continuous period of almost a decade to date,” said Moyo in his
application to the South Gauteng High Court.



Instead, Moyo believes his alleged victimisation is a result of him raising concerns about what he says is a conflict of interest for Old Mutual chairman and former minister of finance <a href="https://www.cnbcafrica.com/videos/2019/05/24/trevor-manuel-sheds-light-on-the-suspension-of-old-mutual-ceo/">Trevor Manuel</a>. This, he claims, relates to the split of Old Mutual UK from the South African business, where Rothschild, another company  Manuel is chairman of, were the lead advisers for a small fortune in advisory fees.  



This, as well as an undisclosed payment of
Manuel’s legal fees, amount to what Moyo terms a “triple conflict.”



Old Mutual rejects Moyo’s claims without
reservation and intends to rebut them in court.



The escalation of this high profile disagreement
to the courts raises an interesting set of questions around corporate
governance and practitioners are sure to watch this closely. 



Mthombeni says although this is not a
watershed moment in corporate&nbsp; governance
in South Africa, “it will show if we give lip service to conflicts of
interest.”

Old Mutual court case: Bring me my sling and stones: Peter Moyo vs Goliath

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Old Mutual Peter Moyo’s lawyer Eric Mabuza told CNBC Africa that it was the deterioration of the relationship with Trevor Manuel that was behind the sacking. The company dismissed him this week following a lengthy suspension, claiming he had suffered from a conflict of interest.

Old Mutual’s Moyo sacked for deteriorating relationship with Trevor Manuel – lawyer

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Corporate SA is recovering from the shock of the suspension of one the country&#8217;s highest profile CEOs from one of Africa&#8217;s biggest finance companies. The board of Old Mutual suspended Peter Moyo first thing this morning in an email to staff. CNBC Africa spoke to one of the longstanding shareholder after the meeting.

What do shareholders make of Peter Moyo’s suspension?

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Corporate SA is recovering from the shock of the suspension of one the country&#8217;s highest profile CEOs from one of Africa&#8217;s biggest finance companies. The board of Old Mutual suspended Peter Moyo first thing this morning in an email to staff. CNBC Africa spoke to the Chairman of the board and the former finance minister of SA, Trevor Manuel.

Trevor Manuel sheds light on the suspension of Old Mutual CEO

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In Houghton CNBC Africa’s Fifi Peters spoke to former Finance Minister Trevor Manuel and former Absa CEO Maria Ramos. She said President Cyril Ramaphosa has worked very hard in his time as president to openly confront the big issues in South Africa &#8211; issues like growth and jobs.

Manuel, Ramos on what’s at stake in the #SAElections2019

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The future of South Africa after the dark days of Zuma’s reign is slowly coming to an end.

Trevor Manuel

Old Mutual wins case against axed CEO Peter Moyo

Old Mutual calls on Judge Mashile to recuse himself from contempt hearing

Old Mutual Personal Finance MD resigns

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

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Old Mutual Chair Trevor Manuel opens up on Peter Moyo

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Trevor Manuel

Old Mutual wins case against axed CEO Peter Moyo

Old Mutual calls on Judge Mashile to recuse himself from contempt hearing

Old Mutual Personal Finance MD resigns

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

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Old Mutual Chair Trevor Manuel opens up on Peter Moyo

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

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Old Mutual court case: Bring me my sling and stones: Peter Moyo vs Goliath

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Manuel, Ramos on what’s at stake in the #SAElections2019

Trevor Manuel speaks about the Zuma years, damage done to SOEs and Ramaphosa’s investment drive

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