Old Mutual sacked Moyo for querying Manuel’s legal fees - lawyer
Peter Moyo’s lawyer Advocate Eric Mabuza said they would prove that there was no conflict of interest as cited by old mutual in its statement.
JOHANNESBURG – Lawyers for fired Old Mutual CEO Peter Moyo said they would argue in court that their client fell out of favour after querying why the insurer was paying legal fees for its chairman Trevor Manuel.
Moyo’s lawyer Advocate Eric Mabuza said they would also prove that there was no conflict of interest as cited by Old Mutual in its statement.
But Old Mutual said it would not respond to the allegations that the breakdown in the relationship between Manuel and Moyo was the real reason for his termination as these were just rumours.
Sources at Old Mutual have told Eyewitness News that the real reason behind Moyo’s sacking was that he queried the payment of legal fees for Manuel.
And Mabuza has confirmed this, saying the fees ran into millions of rands.
“Mr Moyo raised the issue of Old Mutual paying legal fees for the chairman, consistent with his duties, the board ignored completely.”
Mabuza said the thrust of Moyo’s case was that his relationship with Manuel broke down and the conflict of interest raised by the insurer was just smoke and mirrors.
“Why did they fire a performing CEO over something that could have been resolved because they are not pulling out of the BEE structure, in fact, the dividend they complain of was paid.”
Old Mutual Chief Communications Officer Tabby Tsengiwe said the insurer did not “respond to rumours and innuendos, and due to the likelihood of litigation in this matter, does not believe it would be appropriate to comment any further”.