Minister Brown declines Molefe’s R30-million pay-out

Sunday, April 23, 2017

Pretoria- Public Enterprises Minister Lynne Brown has declined Eskom’s proposal to pay its former Group Chief Executive Brian Molefe, a R30-million pension pay-out.

In a statement on Sunday, the minister said the Eskom board’s reasoning in formulating the proposed pension pay-out was conceived lacking in legal rationale.

She said 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. 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.”

Minister Brown has instructed the board to urgently engage Molefe and report back to her with an appropriate pension proposal within seven days.

Further, the minister has asked the board to investigate how its proposal got into the public domain prior her having had the opportunity to consider it.

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

Most Read

SAnews on Twitter