Around the World
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.
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.
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.
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]
Around the World
Buhari nominates Okonjo-Iweala as DG World Trade Organization
President Muhammadu Buhari nominated the former Minister of Finance and Coordinating Minister of the economy, Ngozi Okonjo Iweala, as the Director-General of the World Trade Organization (WTO).
President Muhammadu Buhari has nominated the former Minister of Finance and Coordinating Minister of the Economy, Ngozi Okonjo Iweala, as the Director-General of the World Trade Organization (WTO).
This was seen in a tweet posted by the Presidential aide on Digital and New Media, Tolu Ogunlesi, in the early hours of Friday, June 5, 2020.
In the statement, Ogunlesi said that the current Director-General of the intergovernmental organization, Roberto Azevedo, is stepping down from his position on August 2020, a year ahead of the end of his tenure.
READ ALSO: Naira gains N68 against $1 at 12-month forward market, as devaluation concerns ease
Azevedo, who has been the head of the WTO since 2013, is stepping down at this critical period of global economic crisis and the trade war between the United States of America and China. The WTO head said this is the best way to avoid my chaos at the alliance, which has witnessed attacks from US President, Donald Trump.
This means that the election that was earlier scheduled for 2021 when his tenure was supposed to expire might be coming up much earlier for a new four-year term.
READ MORE: Meet Ibrahim Agboola Gambari, President Buhari’s new Chief of Staff
Tolu Ogunlesi in his statement said, ”President Muhammadu Buhari has nominated Okonji-Iweala as Nigeria’s candidate for the position of the Director-General of World Trade Organization. DG Azevedo is stepping down in August 2020, a year earlier, so the election of the new DG, originally scheduled for 2021, may take place much earlier”.
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President @MBuhari has nominated @NOIweala as Nigeria’s candidate for the position of DG of @wto.
DG Azevedo is stepping down in August 2020, a year early, so the election of a new DG, originally scheduled for 2021, may take place much earlier.
— tolu ogunlesi (@toluogunlesi) June 4, 2020
Details later…
According to a monitored report, President Buhari withdrew the candidacy of Nigeria’s permanent representative to WTO, Yonov Frederik Agah, for the same position.
Around the World
AfDB agrees to the review of ethics committee’s report on Akinwumi Adesina
The independent review shall be conducted by a neutral high calibre individual with unquestionable experience, high international reputation and integrity within a short time period of not more than two to four weeks maximum, taking the Bank group’s electoral calendar into account.
The Bureau of the Board of Governors of the African Development Bank (AfDB), has agreed to authorize an independent review of the report of the ethics committee of the bank’s board of directors on the allegations levied against the President of the Bank, Akinwumi Adesina.
This was contained in a communique which was released and signed by the Chairperson of the Bureau of Board of Governors, Ms Niale Kaba, after the meeting of the bureau board of governors on June 4, 2020, with respect to the complaints against the President of the bank.
In taking the decision, the Bureau agreed that AfDB’s ethics committee performed its role on this matter in accordance with the applicable rule under resolution B/BG/2008/11 of the board of governors and that the Chairperson of the Bureau of Board of Governors performed her role in accepting the findings of the ethics committee in accordance with the said resolution.
READ MORE: AfDB’s Akinwumi Adesina hits back, denies allegations against him
The bank’s board of governors in its statement said, ‘’Based on the views of some Governors on the matter and the need to carry every Governor along in resolving it, the Bureau agrees to authorize an independent review of the report of the ethics committee of the board of governors relative to the allegations considered by the ethics committee and the submissions made by the President of the Bank Group thereto in the interest of due process.
‘’The independent review shall be conducted by a neutral high calibre individual with unquestionable experience, high international reputation and integrity within a short time period of not more than two to four weeks maximum, taking the Bank group’s electoral calendar into account.
‘’The Bureau agrees that, within a three to six months period and following the independent review of the ethics committee report, an independent comprehensive review of the implementation of the bank’s group whistleblowing and complaints handling policy should be conducted with a view to ensuring that the policy is properly implemented, and revising it where necessary, to avoid situations of this nature in the future.’’
READ ALSO: Akinwunmi Adesina receives highest honour of the Republic of Liberia
Following the allegations of unethical conducts, questionable appointments and contract awards by a group of whistleblowers and the subsequent clearance of all charges by the AfDB’s ethics committee, the United States Government, who is the largest shareholder outside Africa, asked for an independent probe of those allegations.
The US treasury secretary questioned the integrity of the committee’s process as well as the internal processes of the bank.
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Adesina, a few days ago, met with President Muhammadu Buhari, where he assured of the country’s support towards his travails and his second term bid for the Presidency of the multilateral institution.
Around the World
Bonny light up by over 5%, inches closer to $40
Crude oil prices, against earlier predictions, surged past the $40 per barrel mark in the early hours of Wednesday – the highest in almost 3 months.
As part of signs that the global oil market is moving closer to rebalancing, Nigerian Bonny light price against earlier predictions, surged closer to $40, as it closed at $37.57 per barrel mark, up by 5.57% on Wednesday.
This is coming against the backdrop of a decline in crude oil inventory by 483,000 barrels for the week ending May 29, as estimated by the American Petroleum Institute (API) on Tuesday, and signs that OPEC+ producers are close to agreeing on a short extension of their historic deal to cut output.
READ MORE: Here are 7 oil producing countries that have been most affected by COVID-19
According to data from oilprice, the Brent crude was sold for $39.79 per barrel. The American WTI dropped to $36.79 per barrel.
Meanwhile, Russia and some other OPEC+ member countries are pushing for an extension by a month or 2 of the current output cut of 9.7 million barrels per day beyond June. This is within the 1-3 months’ extension that Saudi Arabia is pushing for.
(READ MORE:Crude oil prices rally as investors remain optimistic about oil production cut)
Either way, the market likes the idea of more cuts, with the understanding that going through with the earlier agreed output cut after June, will not be enough to draw down the global oil glut that is negatively affecting prices and building up inventories.
Analysts had predicted an inventory build of over 3 million barrels, and last week, the API had predicted a crude oil inventory of 9.731 million barrels. Meanwhile, the Energy Information Administration (EIA) estimated that the inventory was going to be up by 7.9 million barrels by last week.
