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Confusion over Moyo’s status at Old Mutual

High fives: Lawyer Eric Mabuza, left, and axed Old Mu­tual CEO Peter Moyo cel­e­brate the rul­ing by the high court in Jo­han­nes­burg that or­dered the in­surer to tem­po­rar­ily re­in­state Moyo.

Confusion reigns on whether Old Mutual CEO Peter Moyo should return to work, with the company saying he has to stay at home while it appeals the court judgment that reinstated him. On Wednesday his lawyer was adamant he could return to work. The confusion is likely to increase volatility at its head office and could wreak further havoc on its share price. Soon after Tuesday’s judgment, Old Mutual’s share price fell 5.45% to R19.26.

Confusion reigned on Wednesday whether Old Mutual CEO Peter Moyo should return to work or not, with the company saying he has to stay at home while it appeals against the court judgment that reinstated him.

Moyo’s lawyer was adamant the CEO could return to work.

The confusion is likely to increase volatility at the insurer’s head office and could wreak further havoc on its share price. Soon after Tuesday’s judgment, Old Mutual’s share price fell 5.45% to R19.26, its biggest oneday drop in more than four months. On Wednesday the insurer closed at R19.22.

Moyo reported for work on Wednesday morning, but was not permitted to do any work because of the appeal, Old Mutual spokesperson Tabby Tsengiwe said.

“Mr Moyo is neither required nor permitted to report for work because the court judgment has been suspended as a result of our application to appeal,” Tsengiwe said.

However, Moyo’s lawyer, Eric Mabuza, said Old Mutual was wrong and the only way the court order, which was an interim ruling, could be suspended was if the insurer lodged an application with the court asking for it to be suspended.

“We spent the whole day trying to explain to them that they are wrong,” Mabuza said. “It is quite regrettable that a company like Old Mutual really put themselves in that position.”

Asked whether Moyo would try to report for work again on Thursday, Mabuza said “he will assert his rights”.

Old Mutual said Moyo was allowed access to the building when it opened on Wednesday, but that its legal team met Moyo and his lawyers to explain the insurer’s position.

On Tuesday, the high court in Johannesburg ordered Old Mutual to temporarily reinstate Moyo, who was fired on June 18 after a short suspension, due to a breakdown in trust between him and the board as a result of a conflict of interest linked to NMT‚ a company co-founded by Moyo and in which Old Mutual has shares.

Moyo approached the court on June 28 for an urgent application to be temporarily reinstated and to interdict Old Mutual from filling his former position. Old Mutual had made it clear in court that it did not want Moyo to return to the company, even if he won the case.

“Old Mutual is confident it will be successful on appeal and that another court will come to a different conclusion,” Tsengiwe said. “Until then, the business continues as usual under the stewardship of the highly experienced Iain Williamson as interim CEO and a strong and competent leadership team.”

Moyo is expected to lodge a damages claim against Old Mutual for reputational harm, and also ask the court to declare the insurer’s board of directors — including chair Trevor Manuel — delinquent.

Meanwhile, Old Mutual on Wednesday afternoon received a bomb threat and evacuated its offices in Sandton.

Tsengiwe said the threat was made by telephone.

“We are not sure about the authenticity of the threat, but have to treat it with the seriousness it deserves, so we have a bomb squad in the building right now with sniffer dogs,” she said.