ESKOM ESCAPADES
Molefe’s R30m more illegal golden handshake than pension payout
Inconsistent reasons given for generous benefit do not add up to a rational — or lawful — payment, write Rosemary Hunter and Ludwig Frahm-Arp
When Brian Molefe announced in November 2016 he was leaving Eskom after serving only 22 months of his five-year contract, he said he was doing so "voluntarily" because it was "in the interests of the company and the public that it serves". According to news reports at the time, the board announced it "regretted" but "understood" Molefe’s decision, and Public Enterprises Minister Lynne Brown issued a statement saying she regretted his resignation. Neither Molefe nor the Eskom board revealed at the time that Eskom had agreed to pay R30m — the equivalent of the remuneration he would have earned during the balance of his contract if he hadn’t left prematurely — to the Eskom Pension and Provident Fund to be used to provide Molefe with an unusually generous pension benefit. When that information came to light a few weeks ago, the minister reportedly told Eskom’s board she found its explanation – that it thought the "pension arrangement" an appropriate reward for good performance — "lackin...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.