South Africa: Brian Molefe Ordered to Pay Back Millions to Eskom

By Lungani Zungu

Brian Molefe's woes are far from over.

Eskom has been granted permission to recoup millions that the former CEO owes the struggling power utility's Pension and Provident Fund.

Molefe owes Eskom R9.9 million that he received in 2016 as part of his pension. The payment was found to have been irregular by the North Gauteng High Court in Pretoria in 2018.

In a second ruling in 2019, Molefe was ordered to pay back the R9.9 million, plus interest, to the pension fund.

Since then, Molefe has been locked in a legal brawl with his former employer in a bid to keep the money.

Another ruling in July instructed Molefe to pay it back.

On Wednesday, Mel Govender, Eskom group executive for legal and compliance, told Parliament's Standing Committee on Public Accounts (Scopa) that the power utility can enforce the order to recover the funds from Molefe's pension.

"We have secured an order against Brian Molefe's pension. Subsequent to the order, Molefe has applied for leave to appeal. This appeal has been dismissed, meaning that now Eskom can enforce the order," Govender was quoted by News24.

Molefe, once a high-flier with a cosy relationship with former president Jacob Zuma and the controversial Gupta family, was Eskom's chief executive between 2015 and 2016.

The case against Molefe was lodged by the trade union Solidarity and the DA.

Mkhuleko Hlengwa, the chairperson of Scopa, welcomed the ruling, saying it was a step in the right direction.

"All the people who have unfairly benefitted from pensions in state-owned enterprises should pay back the money," said Hlengwa.

Eskom is taking steps to freeze the pensions of people who are charged and are being investigated, said CEO André de Ruyter.

Molefe is also embroiled in another legal battle over the procurement of 1,064 locomotives during his time at Transnet, at a cost of R54 billion.

He is facing charges of fraud, corruption and money laundering. He appeared in court last week, and the matter was postponed to 30 November.

This article originally appeared in Scorlla

Photo: GCIS / Flickr (CC BY-ND 2.0)