Former Old Mutual CEO says he did not authorise writing off NMT debt

Former Old Mutual Chief Executive Officer Peter Moyo claims he did not know about a letter by NMT Group, a company in which he was a director, requesting Old Mutual to write off R4.8 million in debt interest payments owed to Old Mutual.

Moyo concedes that his family trust was one of the companies linked to NMT that would benefit from the write-off but says he did not know about the request.

NMT’s debt, which includes interest on unpaid dividends, increased from R138 million to R267 million.

Moyo was responding to a question in a virtual hearing before the Gauteng High Court.

“Mr. Moyo, this request is made on behalf of the three Zel-P companies correct?”

“Yes, that is correct,” Moyo responded.

“One of the companies on whose request is being made is your company, correct?”

“ Yes,” said Moyo.

“And you say you did not authorise this request?”

“No, I did not authorise this request.”

“What did you do when you realised when you heard that there was this request made on behalf of your company?”

“I only realised this request after Old Mutual had terminated my contract,” Moyo responded.

Moyo’s case against Old Mutual

Moyo has brought a claim against Old Mutual for his reinstatement and damages to the tune of R250-million.

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. Moyo’s contract was terminated in June 2019 and he has since lost a number of cases for his reinstatement.

Old Mutual terminated Moyo’s contract after it found that he had violated the terms of his employment contract by placing his private financial interests ahead of the company’s interests regarding a dividend payout.

Moyo’s legal representative, advocate Dali Mpofu, says some of the witnesses who were subpoenaed did not submit witness statements. He says, however, that that should not stop or delay court proceedings.

Mpofu says the individuals he wanted to call as witnesses have already submitted statements to the defence teams which means he can question them based on those submissions. Mpofu was responding to questions posed by Judge Gregory Charles Wright.