Brian Molefe’s golden handshake: Did Eskom have to pay him R30m to go away?

Brian Molefe has as thick a Teflon coat as his boss, President Jacob Zuma, it seems. Nothing sticks! The former CEO of South Africa’s energy utility was exposed as one of the main actors in former public protector Thuli Madonsela’s state capture report last year. Molefe has direct links to the Gupta family, which has been pulling Zuma’s strings with a view to ensuring that political influence can keep state business flowing their way. At the time, Molefe denied knowing the Gupta brothers. Molefe denied all impropriety but resigned – before re-emerging soon afterwards as an ANC Member of Parliament. A Sunday newspaper says it has evidence that Eskom paid Molefe a R30m golden handshake. Eskom, however, says it will not share figures paid to Molefe for now. Instead, it will release details in a report later this year. According to Times Live, a source familiar with the payment said Molefe – at the helm of Eskom for about 18 months – would have had to earn R243-million a year to warrant a R30m pension payout. His official package as Eskom CEO was R8-m a year. The big question that has yet to be answered is how much is on the table for Molefe to carry out the vision of the Guptas as he settles into life as a politician. – Jackie Cameron 

Brian Molefe, chief executive officer of Eskom Holdings SOC Ltd., pauses during an interview at the company’s headquarters at Megawatt Park in Sandton, near Johannesburg, South Africa. Photographer: Waldo Swiegers/Bloomberg

By Carin Smith, Fin24

Cape Town – South African taxpayers would have to wait until about June to find out how much former Eskom CEO Brian Molefe was paid when resigned in November last year after 18 months at the helm.

Despite maintaining no foul play, Molefe resigned from Eskom after being named in the State of Capture report by former public protector Thuli Madonsela.  

Now it is alleged that Molefe received a R30.1m “golden handshake” from Eskom last month, the Sunday Times reported on Sunday. The newspaper claims to have seen documents mentioning this amount listed under “separation/severance cost” and “Eskom pension fund” payment.

Molefe earned about R8m a year as Eskom boss and was also allocated shares.

Eskom board spokesperson Khulani Qoma told Fin24 that whatever Molefe received was due to him. Qoma emphasised that whatever was due to Molefe, was paid at the end of last year. He has not received anything this year.

“In terms of governance we have to follow a stipulated protocol. That is why we cannot make any information known ahead of the release of the annual reports,” Qoma told Fin24 on Sunday.

“We maintain that there is nothing untoward in what Molefe has received. Whatever he has received was due to him and appropriate in terms of the Labour Relations Act.”

Qoma said whatever any of the Eskom directors received, including Molefe, will be available in the audited results due out in June.

Brian Molefe sworn in as member of parliament. More magic available at

A spokesperson for Eskom also told Fin24 on Sunday that all executive remuneration is reported in its integrated report, and as such Molefe’s remuneration will be reported in the 2016/17 integrated report, which will be released later on in the year.

Colin Cruywagen, spokesperson for Public Enterprises Minister Lynne Brown, told Fin24 on Sunday that he wants to repeat what the minister has already said, namely that she is not aware of any severance package paid out to Molefe.

“It is an Eskom operational matter managed by the Eskom board. As the minister said, it will only be brought to her attention if it is something unusual,” said Cruywagen.

“So, the fact that it was not brought to her attention indicates that there was nothing unusual.” 

Source: Fin24

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