PRETORIA, South African Public Enterprises Minister Lynne Brown has rejected a prposal by State-owned power utility Eskom to pay its former Group Chief Executive Brian Molefe a 30-million-Rand (about 2.28 million US dollars) pension pay-out.
In a statement on Sunday, the minister said the Eskom board’s reasoning in formulating the proposed pension pay-out was lacking in legal rationale. It cannot be substantiated as a performance reward because Molefe has already been granted a performance bonus for his contribution to the turnaround of Eskom.
Nor is the proposed pension payout justifiable in light of the current financial challenges faced not only by State-Owned Companies (SOCs), but by the country as a whole. I have in the past asked Eskom and the other five SOCs in my portfolio to demonstrate financial prudence and social consciousness when considering executive emoluments.
Brown has instructed the Eskom board to urgently engage with Molefe and report back to her with an appropriate pension proposal within seven days.
Further, the minister has asked the board to investigate how its proposal got into the public domain prior to her having had the opportunity to consider it.
It is unfortunate that such a sensitive and private matter was handled so recklessly.
Source: NAM NEWS NETWORK