Eskom recovers Brian Molefe's R30m pension fund payment

Eskom says it has recovered the R30m unlawfully paid to Brian Molefe’s pension benefit.  

“Eskom is pleased to confirm it has successfully recovered the R30m it unlawfully paid to the Eskom Pension & Provident Fund (EPPF) for the benefit of former CEO Brian Molefe during 2016.

“In July 2022 the North Gauteng High Court reaffirmed a 2018 high court judgment that had reviewed and set aside a 2016 early retirement agreement between Mr Molefe and Eskom.

“In terms of the agreement, Eskom paid the EPPF approximately R30m to boost Mr Molefe’s early retirement pension payout,” Eskom said on Wednesday.

“The EPPF, the party in the court process with Mr Molefe, has refunded Eskom.” 

This year, the Pretoria high court upheld that Molefe should pay back the money. This came after it reviewed and set aside a decision taken by the board of Eskom in November 2016 to accept Molefe’s “early retirement” proposal.

Molefe’s application for leave to appeal the high court decision was dismissed by the Supreme Court of Appeal in 2018.

He then applied for leave to appeal at the Constitutional Court.

The full court of this division dealt with three separate but consolidated applications. These applications followed the release of a report by the public protector’s office containing damaging allegations against Molefe of abusing his position at Eskom to benefit “the Gupta family” and businesses under their control. The release of the report prompted Molefe to resign and seek early retirement and to become a member of parliament shortly thereafter, representing the ANC.

As part of his early retirement, Molefe elected to receive one-third of his pension benefits as a lump sum. These benefits were created as a result of a payment of R30.1m made by Eskom to the Eskom pension fund.

The full court found that, at the time of Molefe’s resignation, he was employed on a fixed-term contract and therefore disqualified from participating in the fund.

The full court further found “the decision by Eskom to waive penalties and buy Molefe an extra 13 years of service totalling R30.1m after only 15 months service at the age of 50 stretches incredulity and is unlawful for want of compliance with the rules of the fund.

“What is most disturbing is the total lack of dignity and shame by people in leadership positions who abuse public funds with naked greed for their own benefit without a moment’s consideration of the circumstances of fellow citizens who live in absolute squalor throughout the country with no basic services”.

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