Old Mutual reiterates sacking of former boss despite court ruling

November 28, 2017.Peter Moyo CEO of Old Mutual Holdings.

JOHANNESBURG (Reuters) – South African insurer Old Mutual reiterated its decision to fire former chief executive Peter Moyo in an open letter to shareholders on Thursday, after a court ruled last month that he should be reinstated.

The country’s second-largest insurer has appealed the High Court ruling ordering Moyo’s temporary reinstatement and has said it will not allow him to return to work because of their breakdown in relations.

Old Mutual fired Moyo in June after a disagreement over an alleged conflict of interest. Moyo has challenged the validity of his firing.

“A continued employment relationship between Mr Moyo and Old Mutual is untenable,” Old Mutual’s board of directors said in the letter to shareholders.

“For this reason, Old Mutual has now given Mr Moyo a further notice terminating his employment,” the letter read.

Moyo’s lawyer told Reuters he would read the insurer’s letter and then provide comment.

Old Mutual is under pressure from shareholders to end the damaging dispute with Moyo, which has knocked its share price.

Separately, Old Mutual said in a trading update that adjusted headline earnings were expected to increase by between 6% and 12% when it reports financial results next month.