Share

Corruption Watch, OUTA write letters challenging Molefe's return

Johannesburg – Civic organisations Corruption Watch and OUTA have written letters challenging the reinstatement of Brian Molefe as Eskom CEO.

Fin24 reported on Friday that Molefe will return to Eskom, following the board’s decision to rescind his application for early retirement submitted in November 2016. Public Enterprise Minister Lynne Brown had objected to a R30m pension pay out for Molefe, as he was already paid a performance bonus.

Several organisations and political parties have expressed their disappointment in Molefe’s reinstatement by the power utility. The ANC has called it “unfortunate and reckless”, while the CEO Initiative and Business Unity South Africa (BUSA) have highlighted that it might influence investor confidence.

The Democratic Alliance intends to write to the Parliamentary Enterprises committee, requesting them to investigate the reappointment.

READ: CEOs, business rip into Molefe's reinstatement

In a statement, non-profit Corruption Watch indicated that it has written to Eskom Board chairperson Ben Ngubane and Public Enterprises Minister Lynne Brown.

“We are considering our legal options in relation to the board’s decision,” said the organisation. Corruption Watch is considering to submit an application to have all members on the Eskom Board, including Molefe, be declared delinquent directors. This pertains to former Public Protector Thuli Madonsela’s State of Capture report which implicated Molefe in a coal contract between Eskom and Gupta-owned Tegeta Resources.

“It was the conduct of Molefe and the board in relation to this contract that formed the basis of the Public Protector’s finding that a judicial commission of enquiry be appointed,” explained Corruption Watch. 

Corruption Watch also highlighted a report by PricewaterhouseCoopers (PwC) which showed the contract had discrepancies and did not follow procurement processes.

READ: Damning PwC report on Eskom’s Gupta-linked Tegeta deal

In the letter Corruption Watch expresses concerns on the impact of the decision on “accountability and good governance” at Eskom. 

The organisation has requested a copy of Molefe’s application for an early retirement package, and correspondence and documentation relating to his departure from Eskom and the board’s decision to rescind his application. “In particular, we request minutes of board meetings at which the rescission of the early retirement package was discussed and approved,” executive director David Lewis stated in the letter.

The organisation is also requesting an explanation from Eskom about whether Molefe’s reinstatement is in the best interests of Eskom. Corruption Watch wants Eskom to respond to its queries by Monday.

In a separate press statement Lewis said: “The notion that Molefe should be allowed to return to Eskom because he is ‘innocent until proven guilty’ appears to suggest that only proven criminals could be barred from high public positions.”

He reiterated the organisations intentions to have Molefe, Ngubane and the rest of the board “driven out” of the power utility and other public institutions.

Similarly, the Organisation Undoing Tax Abuse (OUTA) submitted a letter to Brown, explaining why it believes Molefe’s reinstatement is illegal.

ALSO READ: Molefe’s reappointment at Eskom is a farce and will be challenged – OUTA

Among the reasons being that a new appointment of a CEO needs to follow due process, such as formal advertising and screening of candidates.

OUTA wants the minister to provide evidence that Molefe was reinstated following the correct processes. 

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
18.88
+0.3%
Rand - Pound
23.82
+0.4%
Rand - Euro
20.38
+0.3%
Rand - Aus dollar
12.30
+0.3%
Rand - Yen
0.12
+0.3%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
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