(Ecofin Agency) - South African insurance group announced it is maintaining its decision to fire CEO Peter Moyo (pictured), despite a court decision in Johannesburg. The company said in a statement that regardless of what might happen in the legal proceedings, the events following the June notification made it clear that it was untenable to maintain a working relationship between Mr. Moyo and Old Mutual.

Old Mutual explains that the offence committed by the manager they want to fire is serious. He would have preferred to pay himself dividends at the expense of the interests of the company, which claims to be ready for the legal battle and all the consequences that will follow.

“We must accept that Mr Moyo may decide to challenge this step too. We will stand our ground if he does, naturally and at all times continuing to respect the law and our court system,” the company explained.

The insurer forecasts its net income excluding extraordinary activities to decline by 33-36% in H1 2019 from H1 2018. Old Mutual has lost 18% of its value since the beginning of the year.

Idriss Linge