Former Old Mutual Chief Executive Officer (CEO) Peter Moyo says there was no conflict of interest on his part with regards to the dividend payment matter which resulted in his axing as CEO.
Old Mutual fired Moyo in June 2019 after suspending him for alleged conflict of interest after he and his partners at an investment company, NMT, paid themselves R85 million in a dividend payout allegedly before settling the R65 million in overdue preference dividends owed to Old Mutual.
This was despite a written agreement between the two parties stipulating payment due dates which NMT allegedly failed to honour.
Responding to a question in a virtual hearing before the Gauteng High Court, Moyo says if Old Mutual wanted to be paid it should have said so.
“NMT did not pay the capital amount on the 30th of June because they were in discussion with Old Mutual for a rollover which was part of the agreement. Rolling over the amount was part of the agreement. You were in breach, you had the money to repay the Old Mutual debt of R65 million, correct?
“Yes,” said Moyo.
“Instead you decided to distribute that money to the shareholders, including yourself?”
“Yes, including myself and Old Mutual,” said Moyo.
“Well, that was a classical conflict of interest.”
Moyo has brought to court a claim against Old Mutual for his reinstatement and R250 million damages. The trial is expected to be heard over the next ten days in the Johannesburg High Court. Old Mutual has argued that Moyo was lawfully dismissed and paid what was owed to him.
The battle between Moyo and Old Mutual has been going on for years: