Former Old Mutual CEO Peter Moyo's legal team say they will be arguing that their client fell from grace after questions why the insurer was footing the bill for Trevor Manuel's legal fees, not a conflict of interest as stated.
Advocate Eric Mabuza says that they will be able to prove that there had been no conflict of interest concerning Moyo, as Old Mutual claims.
EWN reports that sources at the insurer claim Moyo had been shown the door after he queried why Old Mutual was paying for Manuel's legal fees.
Mabuza confirms this, claiming the fees amounted to millions of Rands, commenting that:
“Mr Moyo raised the issue of Old Mutual paying legal fees for the chairman, consistent with his duties, the board ignored completely.”
Mabuza says that Moyo's case revolves around his relationship with Manuel suffering, resulting in his termination, with the conflict of interest raised by Old Mutual blasted as just smoke and mirrors:
“Why did they fire a performing CEO over something that could have been resolved because they are not pulling out of the BEE structure, in fact, the dividend they complain of was paid.”
Tabby Tsengiwe, Old Mutual Chief Communications Officer, commented that the insurer would not “respond to rumours and innuendos, and due to the likelihood of litigation in this matter, does not believe it would be appropriate to comment any further”.
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