Old Mutual suspends CEO, citing ‘material breakdown in trust’

Gordon_R

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IMO he seems to have a Messiah complex, believing his self-created case is worthy of the attention of the highest court in the land, rather than a simple employee dismissal. Breakdown of trust is probably a euphemism for 'loopy as a fruitcake', but OM can't say that or they would be sued for libel.
 

akescpt

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Doesn’t allow them not to follow due process. They have create this mess. Not moyo’s fault for exercising his rights.
 

schumi

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Trouble for Peter Moyo as Old Mutual plans to exit his company, which is also being sued by the IDC

In its half-year results, released on Monday morning, Old Mutual says it is planning to exit a company founded by its on-again, off-again CEO Peter Moyo.

Moyo was axed in June following a suspension in May, with Old Mutual citing conflict of interest and a breakdown in trust. Moyo owns 25% of a company called NMT, which he cofounded, while Old Mutual also owns 20% in NMT. Since 2004, Old Mutual invested almost R300m in various NMT companies.

NMT Capital held stakes in various companies, including Basil Read (which went bust last year), employee benefits consultants Amabubesi, Zimbabwean insurance group WFDR, oil and petroleum group Falconmere and the large American multinational DXC Technology.

Old Mutual's board cited NMT’s breach of dividend payments as the reason for their problem with Moyo.

It appears that Moyo was paid dividends of R31m, while Old Mutual was still owed payouts from NMT. But Moyo has in turn argued that the claims against him were "artificially manufactured" and that his "deteriorating" relationship with Old Mutual chairman Trevor Manuel was central to his dismissal.

Old Mutual says it is currently negotiating with NMT to exit its stake in the company and related businesses, and it is also aware that the Industrial Development Corporation (IDC) had raised a dispute with the directors of NMT over the payment of an ordinary dividend in 2018, which they viewed to be unlawful.

The Sunday Times reported this weekend that NMT is facing a claim of more than R150m from the IDC.
More at:
 

Cius

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The English have Brexit, we ave Mooi-xit. First class entertainment provided by people who should not be entertainers.
 

schumi

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Moyo no longer an employee of Old Mutual, says Manuel


Old Mutual board chair Trevor Manuel says Peter Moyo is no longer an employee of the insurer, despite a letter sent to him saying that it “acknowledges that he has tendered his services and that he continues to do so” but he is not required to be present at work.

Manuel said on Friday that Moyo has received his six-months’ notice pay from Old Mutual, making it clear where he stands and added that he knows nothing about him working from home.

Manuel’s comments come after Old Mutual issued a statement saying it is not backing down in its legal battle with Moyo, despite sending him a letter saying it wants to “de-escalate litigation between the two parties”.

Old Mutual fired Moyo for the second time in August after the high court in Johannesburg ruled in July that his first axing was illegal because he was not afforded a disciplinary hearing. The second dismissal came while Old Mutual was still waiting to hear if it would be granted leave to appeal against the court’s July ruling that it should reinstate Moyo.

On Thursday, the insurer sent a letter to Moyo informing him that it would not be fighting the court’s second order that it should reinstate him, adding that he can only work remotely if he wants to continue “tendering his services” to Old Mutual.

The letter sent to Moyo by Old Mutual’s lawyers, Bowmans, says the insurer has since “reconsidered its stance” on filing an urgent declaratory order on whether it can bar him from returning to work because of the second dismissal.
More at : https://www.businesslive.co.za/bd/companies/financial-services/2019-09-13-old-mutual-says-it-is-not-abandoning-its-fight-with-peter-moyo/
 

schumi

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Trevor Manuel calls Old Mutual judge a ‘single individual who happens to wear a robe’


. The board chairperson also says he thinks the company is handling the battle with Peter Moyo well.







At a media briefing explaining his board’s position on the ongoing legal battle between Old Mutual and its CEO Peter Moyo, board chairperson Trevor Manuel voiced criticism of Brian Mashile, the judge who ruled that the company’s dismissal of CEO Peter Moyo was illegal and must be overturned.

“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,” he said.

A clip of him saying this has since been shared many times on social media, attracting criticism from users who accused him of a lack of respect for the judiciary.
More at : https://citizen.co.za/business/business-news/2178915/trevor-manuel-calls-old-mutual-judge-a-single-individual-who-happens-to-wear-a-robe/
 

schumi

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Moyo's lawyers seize on Manuel's jibe about a judge

In a press conference on Friday, Old Mutual chairperson Trevor Manuel criticised a judge - which Peter Moyo's legal team was quick to seize on.

Old Mutual suspended Moyo in May for an alleged conflict of interest. He was fired three weeks later. Moyo challenged this in court, and the Johannesburg High Court agreed that the dismissal was unlawful. Old Mutual is appealing this decision, and again fired Moyo last month.

Manuel maintains that the second dismissal is valid and that Moyo isn't employed by Old Mutual any more.

"He can have coffee on the ground floor. If he has a meeting with any of the staff he can use one of our boardrooms on the first floor," said Manuel of Moyo, who has twice been barred from returning to work at the company's Sandton building.

"Unless you are employed in the building, you don’t have access into the building," he said.

But Moyo maintains that Old Mutual is in contempt of court, and has filed a legal application to allow him back into the office. He says the second dismissal forms part of this contempt of court application.
More at : https://www.fin24.com/Companies/Financial-Services/moyo-seizes-on-manuels-jibe-about-a-judge-20190913
 
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akescpt

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The board is accountable and responsible but yet just the ceo has been dismissed illegally. Twice. 6 months pay and get lost is the message. He is not going away it seems.

What the hell is really going on here.
 

surface

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I was listening to Eusebius and was shocked to hear Manuel stating this. But, apparently, good sense seems to have prevailed. Or perhaps he was advised he could be found in contempt of court?

 

Gordon_R

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I was listening to Eusebius and was shocked to hear Manuel stating this. But, apparently, good sense seems to have prevailed. Or perhaps he was advised he could be found in contempt of court?

I think he realised his comment may have been true, since it is likely to be overturned on appeal, but inappropriate to say the way he did.

IMO this saga has become ridiculous. No court can force a company to take back a CEO, any more than it can force a husband and wife to reconcile, when the relationship has irretrievably broken down. The court can award compensation, but it cannot change reality.
 

surface

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I think he realised his comment may have been true, since it is likely to be overturned on appeal, but inappropriate to say the way he did.

IMO this saga has become ridiculous. No court can force a company to take back a CEO, any more than it can force a husband and wife to reconcile, when the relationship has irretrievably broken down. The court can award compensation, but it cannot change reality.
Does company act not come under judiciary? Are companies allowed to do whatever they please without any court intervention ? (I am not saying OM did this though) If I understood correctly, "Judge Brian Mashile ruled that Moyo’s dismissal could not be justified, was unlawful and illegal. ".

And I still can't believe TM said this - no different to how malema's would react after adverse judgement. At least TM apologized so that is something.
Manuel said this of the ruling: “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.”
 
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Gordon_R

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Does company act not come under judiciary? Are companies allowed to do whatever they please without any court intervention ? (I am not saying OM did this though) If I understood correctly, "Judge Brian Mashile ruled that Moyo’s dismissal could not be justified, was unlawful and illegal. ".

And I still can't believe TM said this - no different to how malema's would react after adverse judgement. At least TM apologized so that is something.
Of course decisions can be reviewed, but the remedy is not always a binary decision...

The dismissal procedure may have been unlawful, but the judge's remedy was that he gets his job back. This is where we differ, and I believe that other courts may overturn this ruling. A more appropriate outcome would be substantial compensation, rather than forcing the company to take back someone that they clearly do not want.

IMO this guys career is over, and no company will ever employ him again. He seems to have a toxic attitude, and the risk of alienating board members is something that no organisation should contemplate dealing with.
 

surface

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he dismissal procedure may have been unlawful, but the judge's remedy was that he gets his job back. This is where we differ, and I believe that other courts may overturn this ruling .

He seems to have a toxic attitude, and the risk of alienating board members is something that no organisation should contemplate dealing with.
Correct, he (and his lawyers) believes that dismissal has been unlawful and that is what he is fighting about.

On toxic attitude, I don't know him personally and hence not able to judge his character solely based on news reports or looking at his face etc.
 

thechamp

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Yeah, describing someone who stands up for himself as toxic is too harsh, uncool Gordon_R.
 
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