In partnership with
  • Busting Uber myths

    The ehailing firm is constantly trying, succeeding - and sometimes failing, says Ian Mann.

  • Trapped in a democracy

    The very people elected to bring benefits to all are undermining SA, says Solly Moeng.

  • Marikana spectre

    Five years after the bloody massacre calls for justice are growing louder, says Terry Bell.

Loading...

ANC rejects 'reckless' return of Molefe to Eskom

May 12 2017 12:03
Paul Burkhardt, Bloomberg News

Johannesburg - The ANC on Friday said Eskom’s decision to reinstate Brian Molefe as chief executive officer is “unfortunate and reckless” because none of the graft accusations against him have been set aside.

Molefe, who resigned from Eskom Holdings in November, will return as CEO on Monday, Khulani Qoma, a spokesperson for the producer’s board, said by phone on Friday.

Follow Fin24's Live Updates

The Office of the Public Protector found in a report last year that Molefe favoured the Gupta family, which is in business with President Jacob Zuma’s son Duduzane, by awarding coal-supply contracts and helping them buy Optimum Coal Holdings. While he and Eskom denied wrongdoing, Molefe quit on November 11.

South Africa has directed billions of rand to help struggling state-owned entities and their poor governance has been cited by rating companies as a risk to their assessments. Last month, thousands of people took part in nationwide protests against corruption, a lack of accountability within the government, and cabinet changes that saw respected leaders, including former finance minister Pravin Gordhan, lose their jobs.

The board’s decision “is tone deaf to the South African public’s absolute exasperation and anger at what seems to be government’s lacklustre and lackadaisical approach to dealing decisively with corruption - perceived or real,” the ANC said in an emailed statement.

Public Enterprises Minister Lynne Brown last month objected to a R30m payout for Molefe and ordered the board to scrutinise it. The option to ask him to return arose from that process, Qoma said.

“The board decided to rescind the initial decision to grant him early retirement” and that “triggered his reinstatement back to the employer’s organisation,” he said.

MP resignation

Molefe was sworn in as an MP representing the ANC in February and had been named as a possible replacement for Gordhan as finance minister. He has resigned from Parliament, effective Sunday, National Assembly Speaker Baleka Mbete said in an emailed statement.

Molefe’s appointment “may raise more questions about the state of governance” at state-owned enterprises, Standard Bank analysts said in an emailed note to clients.

The public enterprises minister is expected to give a statement later on Friday, spokesperson Colin Cruywagen said by phone.

The board had held negotiations with Molefe over the options in a process that “wasn’t automatic”, Qoma said. “In the end, he appreciated that he could be given an opportunity to finish the good work that he was doing.”

Yields on Eskom’s $1.75bn of bonds due in January 2021 declined 3 basis points to 5.40% at 11:04 in Johannesburg

Read Fin24's top stories trending on Twitter:

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

eskom  |  brian molefe  |  lynne brown  |  soe

NEXT ON FIN24X

 
 
 
 

Company Snapshot

We're Talking About...

Savings Month

It's never too late to start saving. Visit our special issue and add your voice.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The proposal to nationalise SARB will

Previous results · Suggest a vote

Loading...