BREAKING: Brian Molefe challenges his removal as Eskom CEO

By Drum Digital
04 June 2017

Cape Town - Former Eskom CEO Brian Molefe, whose appointment was rescinded on Friday, is challenging the Eskom board's decision to remove him and served papers on both the power utility and Public Enterprises Minister Lynne Brown.

Brown's spokesperson Colin Cruywagen confirmed to Fin24 on Sunday that the Minister's office indeed received the papers and that her legal team is studying the documents.

At the time of publication, neither Molefe nor Eskom responded to requests for comment.

On Friday, Eskom announced that Molefe is no longer the group chief executive of Eskom an that he will also no longer serve as a director on the board of Eskom.

Molefe agreed to return to Eskom after Brown discovered he had been granted a R30m early pension payout by Eskom, which she refused to condone.

She asked the board to find another solution, and his reinstatement followed. Brown at the time said Molefe's reappointment was a better value proposition for the South African fiscus.

However, following a backlash from the ANC, the Democratic Alliance and the Economic Freedom Fighters, an inter-ministerial committee concluded that Brown should order the Eskom board to rescind Molefe's reappointment.

When Brown ordered the Eskom board to rescind the Molefe's reappointment, she also asked it to provide her with two names from the Eskom executive to become acting chief executive.

The Eskom board on Friday morning executed Brown's directive.

"In giving effect to and on the basis of the Minister’s directive contained in the letter dated 31 May 2017, it was resolved that the resolution of the Board of Directors taken on 02 May 2017 is rescinded," said Eskom in a statement.

"Furthermore, it was resolved that the reinstatement agreement concluded between Mr. Molefe and Eskom on 11 May 2017 be rescinded."

The legal bid by the DA and EFF to have Molefe's reappointment overturned was set to be heard in the North Gauteng High Court on June 6 and 7.

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