PRETORIA, South African Public Enterprises Minister Lynne Brown has granted the board of the State-owned power utility, Eskom, more time to resolve through a mutually beneficial consultation process regarding a pension pay-out to its former group chief executive officer, Brian Molefe.
The board has asked for more time to finalise their internal process and in the interest of fairness, I have acceded to it, Brown said Wednesday.
Brown on Sunday rejected the board’s proposal to pay Molefe a 30-million-Rand (about 2.28 million US dollars) pension pay-out. She added that 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, she said, while urging the board to urgently engage Molefe, who had served as CEO of Eskom for just over a year and a half.
The board has to forward an appropriate pension proposal within seven days to the Minister.
The [board] chairperson, Dr Ben Ngubane, approached me this week and he indicated that the process has started. However, he requested an extension, which I have granted, Brown said Wednesday.
Source: NAM NEWS NETWORK