Minister turns down Eskom board's proposed R30m pension payout for Molefe

2017-04-23 16:49
Brian Molefe. (Lerato Sejake, News24)

Brian Molefe. (Lerato Sejake, News24)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Cape Town – Public Enterprises Minister Lynne Brown has turned down Eskom’s proposal to give its former CEO Brian Molefe a R30m pension payout.

She said on Sunday that she had considered the Eskom board’s reasoning in formulating the proposed pension payout, and could not support it.

"I found the argument presented by the board on why the pension arrangement was conceived lacking in legal rationale, and it cannot be substantiated as a performance reward, because Mr Molefe has already been granted a performance bonus for his contribution to the turnaround of Eskom," she said.

"Nor is the proposed pension payout justifiable in light of the current financial challenges faced, not only by State-Owned Companies (SOCs), but by the country as a whole."

She said she had asked Eskom and the other five SOCs to demonstrate financial prudence and social consciousness when considering executive payments.

"Given that I was not a party to the contract of employment concluded between the Eskom board and Mr Molefe, I have instructed the board to urgently engage Mr Molefe and report back to me with an appropriate pension proposal within seven days."

She said it was unfortunate that such a sensitive and private matter had been "handled so recklessly".

She also asked the board to investigate how its proposal had got into the public domain before she had the opportunity to consider it.

Read more on:    eskom  |  brian molefe  |  lynne brown

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.