Old Mutual will immediately appeal the High Court ruling on Tuesday which re-instated Peter Moyo as CEO, a company spokesperson confirmed to Fin24.
This after Moyo won his bid against his former employer to be temporarily reinstated and his dismissal was declared unlawful.
“The filing of the appeal will suspend the operation of the court order. Mr Moyo has been informed that he is not required or permitted to resume his duties, pending the outcome of the appeal proceedings,” the firm said in a statement on Tuesday evening.
Old Mutual said that while it respects the courts, Moyo’s urgent application was “ill-conceived, contained a number of false allegations, and should have been dismissed.” The company said it was optimistic in its appeal and another court will come to a different conclusion.
Business as Usual
“Until then, the business continues as usual under the stewardship of the highly experienced Iain Williamson as interim CEO, supported by a competent and focused leadership team,” Old Mutual’s statement read. Old Mutual maintains it followed the correct procedures in dismissing Moyo and gave him valid notice under his contract.
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He was suspended in May and axed in June, citing a conflict of interest relating to the arrears in payments to Old Mutual by a company he co-founded, NMT Capital.
The Gauteng High Court in Johannesburg found that Moyo should return to his position with immediate effect. Moyo's permanent reinstatement is pending Part B of his application which will be heard at a later stage.
Part B, intended to be set in motion within 60 days of the outcome of today's ruling will see him lodge a damages claim for reputational harm.
Old Mutual has been interdicted from appointing anyone to replace Moyo and was ordered to pay Moyo's legal costs.
The company has maintained throughout that it followed sound governance principles when it took this step, and that it gave valid notice under Moyo’s employment contract. Moyo said after the court ruling he would report for duty on Wednesday morning. He was not available for comment immediately after Old Mutual’ s announcement of the appeal.
Meanwhile Moyo's lawyer Erica Mabuza confirmed to Fin24 that Moyo would still head to work on Wednesday.
"There's nothing that stops him from going to work, there is no appeal, a notice of appeal doesn't suspend the order," Mabuza told Fin24.