This archive report was first published on 4 August 2019.
On July 30, 2019, a South African court ordered the reinstatement of Peter Moyo as CEO of Old Mutual, a move that has sparked corporate governance drama.
The court's decision came after a lengthy legal battle between Moyo and the company's board, led by former Minister of Finance Trevor Manuel.
According to Moyo's affidavits, he had raised concerns about Manuel's conflict of interest in March 2018, when Manuel was approached by Moyo about a complex transaction involving the delisting of Old Mutual PLC from the London Stock Exchange and the listing of Old Mutual Limited onto the Johannesburg Stock Exchange.
Manuel was a director in Old Mutual PLC and the chairperson of the South African listed Old Mutual Limited, as well as Rothschild & Co. Ltd, one of the transaction advisors. Moyo alleged that this created a triple conflict of interest, particularly since Rothschild stood to make millions in fees.
After Moyo raised his concerns, the Corporate Governance and Nominations Committee, chaired by Manuel, resolved not to disclose a payment of millions of rand made to Manuel for his legal fees related to his battle with the Guptas and their associates.
Moyo felt that this was a form of remuneration that should be disclosed to shareholders, and he was subsequently fired by the board in June 2019.
However, the court's decision to reinstate Moyo has been met with resistance from the company's board, with the company secretary filing an affidavit stating that Moyo's 'inflated sense of self-importance' was 'astonishing.'
As Moyo prepares to return to the CEO's office, he has vowed to rebuild Old Mutual, stating, 'The most important thing is that we have to go back and rebuild Old Mutual.'
