Old Mutual vs Moyo: ‘It’s corporate madness’
Old Mutual has defended its decision to axe chief executive Peter Moyo a second time following a protracted legal spat.
The conflict stems from Moyo's failure to disclose a conflict of interest related to NMT Capital.
Spokesperson Tabby Tsengiwe says the decision is in the best interest of the insurer.
"There has been a complete breakdown in mutual breakdown in mutual trust and confidence in Mr Moyo. A situation of incompatibility has arisen and therefore continued employment relationship with Mr Moyo is one that is untenable in so far as the board is concerned."
Earlier this month both parties headed to court in Moyo's bid to be reinstated as CEO.
Moyo's legal advisor Erica Mabuza lambasted Old Mutual on the move, saying it is in contempt of a court order.
"This is just corporate madness. It's a textbook case of contempt of court. It's actually more than contempt, it's worse than delinquency."
Mabuza accuses the board of protecting their own interests.
"Someone surely has to intervene (to save) Old Mutual from itself."
Moyo is expected to meet with his lawyers to discuss a plan of action.