COMMITTEE LEARNS THAT MR MOLEFE DID NOT QUALIFY TO BE A MEMBER OF THE PENSION FUND
Parliament, Friday, 20 October 2017 – The Portfolio Committee on Public Enterprises was briefed by the Eskom Pension and Provident Fund (EPPF) on the pension payout of the former Chief Executive of the power utility, Mr Brian Molefe.
Acting Chairperson, Ms Zukiswa Rantho, said the Committee needs to understand the circumstances of the pension payment of former Chief Executive, Mr Brian Molefe. “How did the Pension Fund come to the conclusion of paying R30m to a person who had worked for 18 months.”
Briefing the Committee, the Chief Executive of the Pension Fund, Mr Sibusiso Luthuli, said in calculating the cost of the early retirement, actuarial factors which took into account, among other things, the CEO’s pensionable emoluments, length of service, early retirement penalties, age, gender and marital status were considered. The associated costs amounted to R30.1m. The costs were invoiced to Eskom and Eskom paid the costs to the Fund on 23 March 2017. Eskom bought 13 additional years of service for Mr Molefe and waived certain penalties once Mr Molefe turned 50.
The calculation contemplated the following: