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Business Times reports that Peter Moyo's NMT Capital, the company at the centre of his conflicts with Old Mutual, is facing a claim of more than R150m from the Industrial Development Corporation (IDC).
While Moyo, who was dismissed as CEO of Old Mutual in June, continues his court battle with the life insurer, the IDC has now joined Old Mutual in the queue for payment from NMT. Both sent letters of demand last week to the company co-founded by Moyo as Amabubesi in the early 2000s. The IDC is threatening legal action to recoup R157m. This amount was a guarantee provided by NMT after the IDC had funded an investment by an NMT subsidiary in the construction sector. A disastrous few years in the sector wiped out the IDC's investment. In addition to the nearly R50m that NMT transferred to Old Mutual recently, the life insurer wants another R21.6m. Moyo went to court and won his case for reinstatement as CEO, only to be dismissed again by Old Mutual last month. In the latest twist, the former CEO is accusing the life insurer of violating the constitution by not allowing him to return to work and sacking him a second time. The spat between Moyo and Old Mutual has dragged on in public for more than three months. Some of the life insurer's large shareholders have urged it to settle as soon as possible, but its board has insisted it wants a public apology from Moyo.
- Read the full original of the above report by TJ Strydom at BusinessLive (paywall access only)
- Read too, Shareholders lose out as Moyo vs Old Mutual drags on, at Mail & Guardian
Get other news reports at the SA Labour News home page