South Africa: How Old Mutual Set Itself Up for the Moyo Mess

analysis

The sacking of Peter Moyo as Old Mutual CEO was linked to NMT Capital, a firm he co-founded in 2002 and in which the insurer holds a 20% stake. Old Mutual had a nominated director named Mobasheer Patel on the board of NMT. Old Mutual chairman Trevor Manuel and Moyo disagree about whether Patel was accountable to Old Mutual or NMT.

Old Mutual chairman Trevor Manuel has joined the public mudslinging match between the insurer and its axed CEO Peter Moyo by offering a scathing diagnosis of how the dispute between the two parties began.

According to Manuel, the Old Mutual board, which he leads, has done nothing wrong and discharged its fiduciary duties in line with good corporate governance standards. The former finance minister believes that Moyo should be blamed for the high-profile removal from his position as CEO.

"Can Moyo say, in good conscience, that he discharged his obligations and duties well to his employer (Old Mutual)? I think no," Manuel said in a Business Maverick interview on Friday 13 September.

Manuel was tasked with informing Old Mutual shareholders about the suspension of Moyo on 24 May after a "material breakdown in the relationship of trust and confidence"...

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