Pan-African investment, savings, insurance and banking group Old Mutual Limited said on Friday its board, chaired by Trevor Manuel, had suspended chief executive officer Peter Moyo with immediate effect, citing “a material breakdown in trust and confidence between him and the board” over a conflict of interest.
“Unfortunately, the board and Mr Moyo have disagreed materially on how the conflict of interest has been managed, resulting in a breakdown in the required mutual trust and confidence,” it said.
“The decision to separate with the chief executive officer is neither the result of performance or financial misconduct related to the Old Mutual business and is purely related to the conflict of interest issue.”
Old Mutual said that the competing interests were regulated in the chief executive’s contract of employment and were disclosed in its pre-listing statement and the annual financial statements.
“The separation [with Moyo] was a result of a material breakdown of trust and confidence, which occurred due to the management of conflicts of interest in business relations with related parties, ” it said.
“These business relations pre-exist the appointment of Mr Moyo as CEO of OML and were considered at the time of the appointment to be manageable.”
The board appointed chief operating officer Iain Williamson as acting chief executive officer.
– African News Agency