CAPE TOWN – Old Mutual Limited chairperson and former minister of finance Trevor Manuel and a host of other company directors may be declared delinquent for breaching the Companies Act where shareholders in the financial services group lost more than R5 billion as a result of their conduct.
In court papers, former Old Mutual chief executive Peter Moyo, who was fired in early June, blew the lid on the conduct of the group's directors, alleging that Manuel had engaged in financial improprieties and breaches of corporate governance practices, which ultimately led to his dismissal.
“Old Mutual shareholders reportedly lost more than R5 billion in its value as a result of the total unnecessary conduct of its directors. This alone amounts to delinquency as envisaged in the Companies Act,” said Moyo.
Old Mutual hit back, indicating that it would oppose Moyo’s application and would use the court process to respond to his claims.
Old Mutual chief communications officer Tabby Tsengiwe said: “It would not be appropriate to comment further while legal proceedings are pending, and we would caution the media or any other party against publishing any untested allegations as fact.