South African Public Enterprise Minister declines former Eskom CEO ZAR30 million pay-out

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The South African Minister of Public Enterprises, Lynne Brown, has declined Eskom’s proposal to pay its former Group Chief Executive, Brian Molefe, a ZAR30 million pension pay-out.

“I have considered the Eskom Board’s reasoning in formulating the proposed pension payout and cannot support it,” says Brown.

“I found the argument presented by the Board on why the pension arrangement was conceived lacking in legal rationale, and it cannot be substantiated as a performance reward because Molefe has already been granted a performance bonus for his contribution to the turnaround of Eskom.”

“Nor is the proposed pension payout justifiable in light of the current financial challenges faced not only by State-Owned Companies (SOCs), but by the country as a whole,” says Brown.

“I have in the past asked Eskom and the other five SOCs in my portfolio to demonstrate financial prudence and social consciousness when considering executive emoluments.”

“Given that I was not a party to the contract of employment concluded between the Eskom Board and Molefe, I have instructed the Board to urgently engage Mr Molefe and report back to me with an appropriate pension proposal within seven days.

“It is unfortunate that such a sensitive and private matter was handled so recklessly.”

“Finally, I have asked the Board to investigate how its proposal got into the public domain prior to my having had the opportunity to consider it,” concludes Brown.

 

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Bontle Moeng is the Founder and Managing Director of BizNis Africa. Moeng has spent 16 years working in the digital and online media industry across Africa. She applied her trade at True Love magazine prior to discovering her passion for Investment news in key sectors across Africa. Moeng previously worked for ITWeb, Starfish Mobile Technologies, ITNewsAfrica, AVATAR Agency, eNitiate, Global Interface Consulting and Havas Johannesburg. Her primary focus is to provide solid and valuable content on investment opportunities for the ICT, Energy and Mining sectors across Africa. In addition, the online news publication assists global companies to expand their presence in Africa. Email: news@biznisafrica.co.za

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