Old Mutual said on Tuesday it had terminated the employment contract for suspended group chief executive Peter Moyo.

Old Mutual’s board suspended Moyo on May 23 after it concluded there had been a material breakdown in trust and confidence. It appointed chief operating officer Iain Williamson as acting chief executive officer.

Chairman Trevor Manuel said this followed prior engagements with Moyo over concerns about how a conflict of interest had been managed in relation to his investments in the NMT group of companies.

Prior to joining Old Mutual, Moyo served as chief executive of investment firm NMT for a number of years and represented the company in various group company boards.

“There is a duty on directors of all institutions to be vigilant regarding the management of conflicts of interest. The importance of this duty has been highlighted by a number of recent corporate governance breakdowns within both the private and public sector,” Manuel said.

Old Mutual said Moyo’s conflicting interest was declared upon his employment and was governed by a specific protocol.

The company’s board however said it had not been provided with an acceptable explanation for the declaration of ordinary dividends by NMT Capital during 2018 in the amount of R115 million, with a resultant benefit to Moyo of R30.6 million, in breach of Old Mutual’s rights as preference shareholder.

The pan-African investment, savings, insurance and banking group said leadership continuity had been maintained through Williamson’s appointment as interim CEO.

– African News Agency