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Eskom chief executive turned member of Parliament Brian Molefe’s abrupt return to the parastatal was apparently due to his pension payout.
Molefe was due to receive a R30 million pension payout from the power utility following his resignation in November, but the payout was blocked by Public Enterprises Minister Lynne Brown.
Eskom board spokesperson Khulani Qoma told City Press today that Molefe would serve as chief executive of the parastatal until 2020, after all parties involved were unable to reach a “mutually acceptable pension proposal”.
“The board therefore rescinded its approval of Mr. Molefe’s early retirement application. Accordingly, and with the minister’s consent, his contract of employment has been reinstated,” Qoma told City Press.
Molefe will now resume his duties on the terms of his original contract.
“Molefe’s contract of employment will automatically terminate, unless otherwise extended, on September 30 2020,” Qoma said.
R7 million was already paid to Molefe, and he has until the end of the year to pay this amount back.
“The consequence of the rescission is that he pays back the pension amount [about R7 million], which has already been paid to him, by the end of this year. He returns to his term of employment and there are no additional terms.
“Though the objective circumstances have resulted in his reinstatement, the board is very excited to have a skillful leader like Molefe back in the employ of Eskom,” Qoma said.
Speculation was rife that Molefe was set to become the next finance minister after becoming an MP, and since the appointment of Malusi Gigaba into the finance portfolio, Molefe has been lying low.
This morning, however, the country woke up to the shocking news that Molefe had resigned as an MP and would be taking up his former role from Monday.
Professor Hardus van Zyl, head of the economics department at the University of Johannesburg told City Press that he had no doubt Molefe was put into Parliament with the aim of becoming the finance minister.
“They then had to re-park him [Molefe] somewhere after Gigaba was appointed to the post. The only problem now is that Eskom is in a difficult position with the country being plunged into ratings downgrades,” Van Zyl said.
Van Zyl saw the reappointment of Molefe as adding to the pressure currently faced by Eskom.
“The downgrades are terrible and we cannot afford for this to happen. It maintains a bad governance position which we see with Eskom. It is ultimately up to Brian Molefe to turn the image of Eskom around,” he said.
When Molefe resigned last year he said that he done so under the premise of maintaining “good corporate governance”.
Meanwhile, several parties have spoken against Molefe’s reappointment.
The Congress of The People’s Dennis Bloem said this morning that “it is clear that the Guptas are in control of South Africa”.
The Gupta-Molefe relationship saw public attention after the State Capture report investigation which was headed by then Public Protector Thuli Madonsela. During her inquiry it was discovered that Molefe had been engaging with Ajay Gupta in a series of phone calls, a total of which 58 calls were recorded between the two from August 2015 to March 2016.
Also discovered in the report were the alleged “visits” that Molefe paid to the Gupta compound in Saxonwold between August and November of 2015.
The South African Federation of Trade Unions “condemned” Molefe’s reappointment.
“The excuse that the Eskom board has given – that because Energy Minister Lynne Brown refused to allow the board to pay Molefe a R30 million pension, it could not then find a mutually acceptable pension arrangement, and that this therefore nullified his early retirement application – is utterly preposterous,” the federation said this morning.
The Democratic Alliance echoed these sentiments, stating that the reappointment of Molefe would reignite the Gupta-linked ties to Eskom.
“The return of Molefe to Eskom will see the Gupta hand return to the power utility, and most likely to the forthcoming nuclear procurement deal. This is something which South Africa cannot accept,” the DA’s public enterprises spokesperson, Natasha Mozzone, said.
The DA has also called for a full-scale inquiry into the matter.
“South Africa deserves to know the truth behind the many scandals currently engulfing Eskom. It is imperative that Parliament conducts an inquiry as a matter of urgency to ensure that those who are responsible for abuses are held to account – not least, Brian Molefe,” Mazonne said.
The ANC has called the decision “reckless”, also calling for immediate action to take place.
“The African National Congress will seek engagement with Comrade Lynne Browne, the minister of public enterprises, under whose authority Eskom falls and under whose direction the entity should operate on this matter,” ANC spokesperson Zizi Kodwa said.
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