The four-year legal battle between Peter Moyo (pictured) and Old Mutual has ended after the Constitutional Court refused his application for leave to appeal against a High Court decision that dismissed his R250 million damages claim against the financial services group he headed as its chief executive.
In a unanimous decision handed down on 30 August, the highest court in the country said Moyo’s application “does not engage its jurisdiction” and “must be refused”.
The court also awarded costs against Moyo regarding his unsuccessful application in the Supreme Court of Appeal (SCA) in November 2022 for leave to appeal the same matter. The SCA dismissed his application with costs.
The Constitutional Court’s decision is a final blow to Moyo’s legal challenges against Old Mutual. He has no further legal recourse.
‘Conflict of interest’
Old Mutual suspended Moyo in May 2019 on the grounds of “a material breakdown in the relationship of trust and confidence” and dismissed him the following month.
Moyo was fired for allegedly pocketing dividend payments linked to an investment holding firm he co-founded called NMT Capital – in which Old Mutual has a 20% stake, which it acquired in 2005 as part of a black economic empowerment deal.
“In flagrant disregard of the provisions in his employment contract designed to manage conflicts of interest between NMT Capital and Old Mutual, Moyo chaired a meeting of the NMT Capital board on 4 July 2018, at which it was decided to pay an ordinary dividend of R105m. Moyo and his partners thus shared R84m, while omitting to pay preference share dividends, valued at R65.4m at the time, due to Old Mutual,” Old Mutual said.
Old Mutual said its board engaged Moyo for months about the matter, but it became clear that he and the board had a difference of opinion about his transgressions and how to resolve them.
Rounds of litigation
Moyo filed various lawsuits against Old Mutual following his dismissal.
In July 2019, the High Court ordered the temporary reinstatement of Moyo as chief executive and blocked the company from appointing his successor.
But Old Mutual prevented Moyo from returning to work, and he was issued with another notice of termination in August.
In January 2020, the Full Bench of the High Court set aside the court a quo’s ruling, finding that Moyo’s dismissal was lawful and did not flout the clauses of his employment contract.
Moyo challenged that decision at the SCA but was unsuccessful. He then brought several other cases: an attempt to secure his reinstatement, as well as R250m in damages, another to have the directors of Old Mutual declared delinquent, and one to have the directors declared in contempt of court.
He consolidated his cases against the directors into a single case, which was heard by a Full Bench of the High Court in November 2021. That matter was dismissed in May 2022. Moyo did not apply for leave to appeal the decision.
Moyo abandoned his bid for reinstatement, instead only pursuing the R250m damages claim. The High Court dismissed his case, and his application for leave to appeal against the decision. Moyo then took the matter to the SCA, which in November last year denied him leave to appeal.
Moyo approached the Constitutional Court in February this year.
Old Mutual’s response
In a statement on 1 September, Old Mutual said it was “extremely pleased” that matter was finally over and that “justice has prevailed in such a resounding fashion”.
“This has been a long journey, but Old Mutual has stood by its principles throughout and always knew we had acted completely within the ambit of the law and in the best interests of our company and its stakeholders,” spokesperson Tabby Tsengiwe said.
“The [Old Mutual] board’s firm and persistent commitment to its fiduciary duties to the company has been vindicated.”
Moyo has yet to issue a statement on the apex court’s decision.
