Citizen Reporter
1 minute read
23 Apr 2017
3:09 pm

No R30m payout for Brian Molefe, says Lynne Brown

Citizen Reporter

Public Enterprises Minister Lynne Brown has said she considered the Eskom board's reasons for wanting to give its former CEO a R30m golden handshake.

Brian Molefe breaks down while talking about his relationship with the Guptas during a media conference where Eskom released its interim financial results on November 03, 2016 in Johannesburg, South Africa. Molefe defended Eskom's deal with Tegeta, a Gupta owned company, saying that allegations levelled against him in Thuli Madonsela's "state capture" report are unfounded. Picture: Gallo Images

While she took the board’s reasoning into account, Brown said she would not approve the large payout.

According to EWN, Brown had rejected the proposed payout which was set to be given to Molefe despite him only serving 18 months at the helm of the parastatal. Brown had previously said she was unaware of the board’s decision and was not involved in operational issues at Eskom.

According to a labour expert, who expressed concerns about the use of taxpayer money in what looked like a “mutual settlement agreement”, the amount appeared “very irregular”.

If the payment was severance, it should have been no more than R15 million, and for it to be a pension payout, Molefe would have needed to be on a gross annual salary of R243 million a year. He “only” earned R8 million a year.


Brian Molefe gets ‘very irregular’ R30m ‘pension payout’ – report

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