Share

Public Protector to probe Molefe's R30m pension payout

Johannesburg - Public Protector Busisiwe Mkhwebane has agreed to probe the decision that led to a R30m golden handshake for former Eskom CEO Brian Molefe.

The Public Protector confirmed in a letter that she would take up the investigation, but merge it with two other complaints.

Public Protector spokesperson Cleopatra Mosana told Fin24 the Public Protector would be probing the role of Public Enterprises Minister Lynne Brown, as well as the Eskom board's role in the saga.

The Democratic Alliance requested the investigation after it emerged that the Eskom board approved a R30m pension payout to Molefe, after only 18 months as CEO of Eskom.

Molefe briefly returned as CEO of Eskom on May 15, but was removed again two weeks later when Public Enterprises Minister Lynne Brown ordered the board to reverse his reinstatement.

He has since launched an application in the Labour Court to have the rescission of his appointment declared unlawful.

Daily Maverick’s investigative unit Scorpio revealed that the Eskom Pension and Provident Fund flouted a number of rules to help Molefe secure his extravagant pension. Scorpio obtained leaked emails from the state utility that outlined how pension fund officials were coaxed into dubious approvals relating to Molefe's pension. Scorpio's report raised questions whether Molefe was even entitled to a pension, because he was not a permanent worker.

Last week Eskom released its annual results, stating in the notes to its financial statements that the R30m that Molefe received as an early retirement benefit will only be refunded to the company pursuant to a court order.

Natasha Mazzone, the DA's spokesperson on public enterprises, welcomed the probe. She said the "outrageous payout is a gross abuse of public funds, especially after Molefe resigned 'in the interests of good corporate governance' after his close ties to the Guptas were revealed in the damning State of Capture report".

"Molefe does not deserve the R30m. In fact, he does not deserve a single cent. He must pay back every dime of the R30m to Eskom," Mazzone said. "It is unacceptable that an individual such as Brian Molefe, who sits deeply in the pockets of the Guptas, is rewarded not for doing a good job."

She said South Africans deserve public servants who work to improve their lives, not individuals who are only interested in lining their own pockets.

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.11
+0.4%
Rand - Pound
23.80
-0.4%
Rand - Euro
20.46
-0.0%
Rand - Aus dollar
12.40
-0.2%
Rand - Yen
0.12
+0.4%
Platinum
920.40
-1.1%
Palladium
1,026.50
+1.1%
Gold
2,322.61
-0.2%
Silver
27.34
+0.6%
Brent Crude
87.00
-0.3%
Top 40
68,051
+0.8%
All Share
74,011
+0.6%
Resource 10
59,613
-2.2%
Industrial 25
102,806
+1.7%
Financial 15
15,897
+1.8%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders