Brian Molefe the biggest winner of Eskom's bonus bill | Fin24
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Brian Molefe the biggest winner of Eskom's bonus bill

Jul 19 2017 18:06
Liesl Peyper

Cape Town – Cash-strapped Eskom’s bonus bill to staff members jumped from R2.1bn in 2016 to R4.2bn in 2017, the power utility’s annual results have shown.

Eskom announced its financial results at MegaWatt Park in Johannesburg on Wednesday after having postponed the release a week ago. 

From the statements it emanated that the highest – and most controversial – windfall went to its former CEO Brian Molefe who pocketed a R2.1m short-term performance bonus – despite his resigning from the company at the end of December 2016. Molefe's salary for 2017 was R6.029m – meaning he took home R8.139m

READ: Eskom mum on R5.5m bonus bonanza for Molefe, Koko and Singh

Controversial former interim CEO Matshala Koko, who is facing disciplinary action following an investigation into alleged conflict of interest, gets a R1.4m bonus and chief financial officer Anoj Singh, who has also been implicated in the Gupta leaked e-mails receives R1.8m.

Eskom spokesperson Khulu Phasiwe told eNCA that the executives would receive bonuses, as they have “met and exceeded their performances”.

Retired, not resigned

The precariousness of Molefe’s tenure at Eskom was recorded in the notes to the financial statements.

“Mr Brian Molefe left the employ of Eskom on the basis of the early retirement agreement between himself and the board. Consequently, he resigned as a director and retired as the GCE (group chief executive), effective 31 December 2016,” the notes read.  

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.

READ: Brian Molefe is no longer the CE of Eskom 

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

Eskom said 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.

“The impact of the transactions will be considered as part of the annual financial statements for the year ending 31 March 2018.”

Handsome bonuses all along

Fin24 earlier reported that Molefe in the previous financial year received a total salary package of R9.467m.

In Eskom’s annual report of 2015/16, it was stated that Molefe, who joined the power utility in an acting position in April 2015, earned R6.973m since his appointment up until the end of the financial year on March 31 2016.

During the same period, Molefe also received a short-term bonus payment of R2.469m, which brought his total annual remuneration package to R9.467m. 

In addition, Molefe was awarded shares in April 2015 to the value of R4.727m, stated as “award performance shares payable in June 2018 at R1.26 per share”.

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