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This CEO is fighting to work for a company that doesn’t want him

When Old Mutual Limited (the parent company of Old Mutual Nigeria) sacked Peter Moyo as its CEO in June 2019, many people thought the matter would die down quickly.

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Old Mutual Limited suspends CEO, Peter Moyo suspended by Old Mutual, Old Mutual Nigeria

When Old Mutual Limited (the parent company of Old Mutual Nigeria) sacked Peter Moyo as its CEO in June 2019, many people thought the matter would die down quickly. But it did not, the reason being that the fired CEO chose to drag the South African insurance company to court. Interestingly, Moyo won the case after a judge ordered his reinstatement. However, Old Mutual’s board of directors refused to let him resume his post.

Meanwhile, Peter Moyo wouldn’t give up fighting. Instead, he sued again, this time demanding that the company be held in contempt of court. This afternoon, news broke that a judge in Johannesburg had outlined a number of procedures that must be followed before a final ruling will be made soon. Legal analysts are of the belief that this second suit will equally turn out in Moyo’s favour.

[READ: Old Mutual suspends CEO with immediate effect, as CEO reacts]

A quick backstory: Old Mutual Limited fired Peter Moyo after citing “material breakdown of trust”. He was reportedly accused of pocketing R30 million worth of dividends linked to NMT Capital. Note that Old Mutual owns 20% stake in NMT Capital which was co-founded by Moyo.

After Moyo sued the company for wrongful termination and won, Old Mutual issued him another letter further terminating his contract for the second time. But this constituted a contempt of court on the part of Old Mutual, a disrespectful offense that could lead to those involved landing jail terms and paying heavy fines.

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Earlier today in Johannesburg, a high court ordered that the second letter terminating Moyo’s contract should be admitted into evidence. This will eventually play a vital role in a ruling that will decide the fate of the company’s board members, as well as the fate of Moyo [himself] as the company’s CEO.

Why Moyo is fighting: At the moment, the position for Old Mutual’s Chief Executive Officer remains vacant. Now, looking at everything that has happened and is still happening, it becomes puzzling as to why Peter Moyo is hell-bent on taking back the position. How could he possibly function in the midst of all the bad blood and distrust? Obviously, he has a lot at stake and must do everything possible to protect his interest.

In the meantime, Old Mutual’s share price has continued to be affected by the scandal. Today alone, the stock declined by 2.69% on the Johannesburg Stock Exchange; obviously reacting to the court’s decision.

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The company is listed on the Johannesburg Stock Exchange and London Stock Exchanges and has operations in more than six African countries, including Nigeria.

[READ: Scandal: Another blow on Nissan as CEO steps aside] 

Emmanuel is a professional writer and business journalist, with interests covering Banking & Finance, Mergers and Acquisitions, Corporate Profiles, Brand Communication, Fintech, and MSMEs. He initially joined Nairametrics as an all-round Business Analyst, but later began focusing on and covering the financial services sector. He has also held various leadership roles, including Senior Editor, QAQC Lead, and Deputy Managing Editor. Emmanuel holds an M.Sc in International Relations from the University of Ibadan, graduating with Distinction. He also graduated with a Second Class Honours (Upper Division) from the Department of Philosophy & Logic, University of Ibadan. If you have a scoop for him, you may contact him via his email- [email protected] You may also contact him through various social media platforms, preferably LinkedIn and Twitter.

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US government to ban WeChat and TikTok from app stores

Chinese-owned social media apps are facing a ban in the US over national security concerns.

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US government to ban WeChat and TikTok from app stores, Reasons why a record number of people are giving up their US citizenship, US approves chloroquine as treatment for coronavirus COVID-19, Nigeria U.S. Donald Trump-oil prices

The United States government says it will ban the services of Chinese tech giants, WeChat and TikTok, from online mobile application stores in the U.S. It also plans to prohibit any funds transfer/payment services through the WeChat mobile application.

This was announced by the U.S Commerce Secretary, Wilbur Ross, in a statement on Friday, following President Donald Trump’s Executive Orders (E.O.) 13942 and E.O. 13943, on the 6th of August.

“In response to President Trump’s Executive Orders signed August 6, 2020, the Department of Commerce (Commerce) today announced prohibitions on transactions relating to mobile applications (apps) WeChat and TikTok to safeguard the national security of the United States,” said Wilbur Ross.

He added that the Chinese Communist Party (CCP), has proven it has the means and the motive to use Chinese tech apps, to threaten America’s national security foreign policy, and the economy of the U.S.

He said the following transactions will be prohibited from September 20th for WeChat and November 12th for TikTok

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  • Any provision of service to distribute or maintain the WeChat or TikTok mobile applications, constituent code, or application updates, through an online mobile application store in the U.S.
  • Any provision of services through the WeChat mobile application, for the purpose of transferring funds or processing payments within the U.S.

Mr. Ross said that with the Executive Order, the US government has taken a ‘significant action’ in fighting China’s malicious personal data breach on American citizens, and also promote democratic rule-based norms, and aggressive enforcement of U.S. laws and regulations.

The U.S government announced that further prohibitive measures, relating to both companies may be announced in the future.

“Should the U.S. Government determine that WeChat’s or TikTok’s illicit behavior is being replicated by another app somehow outside the scope of these executive orders, the President has the authority to consider whether additional orders may be appropriate to address such activities.”

President Trump has given until November 12, to resolve the TikTok security concerns of the US. He added that the prohibitions may be lifted, if they are addressed.

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WTO: Okonjo-Iweala still in contention as 3 candidates depart race for DG

Okonjo-Iweala and the remaining 4 other candidates hope to succeed the current DG, Mr Roberto Azevêdo.

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Ngozi Okonjo Iweala, World Bank, Davos, World Economic Forum, WTO accepts nomination of Okonjo-Iweala as DG despite opposition from Egypt

Three candidates running for the post of the Director-General of the World Trade Organisation have fallen out of the race after failing to secure enough votes in the first rounds of voting, leaving only 5 candidates left, including Nigeria’s Ngozi Okonjo-Iweala.

This was disclosed by Bloomberg on Thursday, before the meeting on Friday. The Candidates that are out of the race are Jesus Seade (Mexico), Tudor Ulianovschi (Moldova), and Hamid Mamdouh (Egypt). The candidates were not able to secure the support needed for the first round of 3 rounds of voting.

READ: China’s Covid-19 vaccine may be ready for general public in November 2020

Dr. Ngozi Okonjo Iweal joins 4 other candidates for the next round of voting. The candidates are; Liam Fox (UK), Amina Chawahir Mohamed Jibril (Kenya), Yoo Myung-hee ( South Korea), and Mohammad Maziad Al-Tuwaijri ( Saudi Arabia).

Ngozi Okonjo-Iweala disclosed last month some of her plans for the Organization if made President. Nairametrics reported she noted that part of her vision is to build a trade institution where there is greater trust among its members. She also stressed that the WTO, at this critical time, is needed to ensure that trade and global markets remain open.

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READ: Soybean Futures reach 2-year high, following U.S sales to China 

On healing the rift between the US and China, Okonjo-Iweala admitted that it is going to be challenging and not be easy. She said:

Well, this is not going to be easy, if it was easy, it could have been done a long time since. So it would be very challenging but it is not an impossible job. It is very clear that both the US and China have been helped and benefitted from the multilateral trading system in the past. Hundreds of millions have been lifted out of poverty. They have experienced shared prosperity in the economies and their countries.’

She added she would listen to both countries to find out what really are the issues causing distrust among them. She said that she will not want to be involved in the larger political problems, but will rather separate the trade issues and focus on them and build this trust.

READ: Amaechi pleads with NASS to halt questioning of loan agreement with China

You need to begin to find areas where there can be confidence-building and trade. Building trust is not talking about it, you have to have areas where both can work together and agree and we have a golden opportunity in the fisheries subsidies negotiations that are going on now because the US is a party to it, China is a party, the EU, all other members,’’ she said.

Okonjo-Iweala and the 4 other candidates will present themselves to the members of the global trade body for the later stages of voting in the hopes of securing the highest number of votes to succeed the current DG, Mr. Roberto Azevêdo.

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WTO: Selection of new DG might be tied to the upcoming US presidential election

The eventual winner could be dependent on the outcome of the November 3 US Presidential elections.

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Global fight against covid-19 at risk over export restrictions - WTO
There has been a growing interest in the heavily lobbied Director-General, World Trade Organization role, following the stepping down of Roberto Azevedo on August 31. For the first time ever, two African women – Nigeria’s Ngozi Okonjo Iweala and Kenya’s Amina Mohammed, have a real chance at emerging as the first female leader of the embattled multilateral organization, in its 25 years history.
However, beyond their impressive resumes as a criterion for appointment, the eventual winner of the top job is expected to be dependent on the outcome of the November 3 US Presidential elections, keenly contested by Republican incumbent Donald Trump, and Democratic nominee Joe Biden.

The WTO’s effort to select a new leader entered a new stage this week, as the ambassadors from 164-member countries met for private consultations, on who they would support.

Six former WTO officials and trade experts revealed that the politicking in Geneva, Switzerland – WTO headquarters, could be a wild goose chase, as the decisive developments that will shape the future of the embattled global trade organization, are unfolding miles away in Washington, ahead of the November 3 presidential elections.

Although, the support of a particular candidate by the United States is critical; 4 trade experts, including former WTO employees, believe that the Trump administration is unlikely to breathe life into a multilateral body that he once threatened to leave. Donald Trump launched a trade war with China, repeatedly imposed tariffs on US allies, and destroyed WTO’s ability to intervene in disputes, by blocking the appointment of members to its Appellate Body.

David Tinline, a former adviser to Azevedo said, “I find it hard to imagine that the Trump administration would shift tack and do something very positive for the system.’

READ: Women entrepreneurs in Africa get $251 million support from G7 leaders

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The US Trade Representative (USTR), Robert Lighthizer, had in June told US lawmakers that, “the WTO needed a reform-driven leader and that he would veto any candidate who showed any whiff of anti-Americanism.”

The former WTO officials and trade experts said that the US-China economic conflict is a further divisive factor, as both countries will likely reject any candidate backed by the other.

The 8 candidates in contention for the top job, are expected to be trimmed down to 5 after the first confessional meetings on September 16. This will be further cut down to 2, and the final decision designed to be taken by convention before the November 7 deadline – just four days after the US elections.

READ: Where next for oil prices?

Aside from the two influential African women vying for the role, Liam Fox, Britain’s former Trade Secretary, is a force to reckon with. If a favorite candidate does not emerge, some WTO members might prefer to wait until after the US election in case Joe Biden wins the US presidential election; especially, as Voting, seen as a last resort, has never occurred in WTO’s history.

A former member of WTO, Peter Van Den Bossche said, “They could play a waiting game, but that would push the decision until at least February or March 2021.”

Even though WTO is member-led, a strong leader who can facilitate decision making, and galvanize its 164 member nations, is crucial to reviving a severely embattled global organization.

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