Statement by the Minister of Public Enterprises, Minister Lynne Brown, regarding the decision by Eskom Board on the pension of Mr Brian Molefe and the progress into the interim CEO, Mr Matshela Koko
12 May 2017
This week, the Board of Eskom briefed me on the outcome of its consultations with former Group Chief Executive Mr Brian Molefe following my request that the proposed pension pay-out to Mr Molefe be re-evaluated.
After considering various options, the Board proposed that Mr Molefe returns all monies received on his departure from Eskom on 1 January 2017 and is reinstated as Group Chief Executive with immediate effect.
In terms of the Board’s proposal, Mr Molefe agreed to serve out the remainder of his original contract and to reconsider the terms of his contract that resulted in the previous pension arrangement.
I believe that Eskom will benefit from the return to the helm of the man primarily responsible for the company’s turnaround in 2015/2016, and that the Board's proposal ultimately represents a significantly better value proposition to the South African fiscus than the previous pension proposal.