Parliament - The head of Eskom's pension and provident fund admitted on Friday that former Eskom CEO Brian Molefe should never have been entitled to a pension from the power utility because he was employed on a fixed five-year contract.
"He should never have been a member of the fund in the first place," Sibusiso Luthuli, CEO of the Eskom Pension and Provident Fund (EPPF), told a parliamentary inquiry into Eskom's affairs.
Under questioning from the evidence leader in the inquiry, Nthuthuzelo Vanara, Luthuli also confirmed that Eskom had created the impression that Molefe had been permanently appointed, before giving instructions that he should be granted extraordinary pension benefits at the age of 50.
"In other words you acted in good faith after an impression was created to you by Eskom that Mr Molefe was a permanent employee? ... And we know now today that such representations were not correct? In other words Eskom misrepresented the facts to the pension fund?"
Luthuli said the fund had no reason to doubt the information given to it by then Eskom chairman, Ben Ngubane, and had subsequently applied the rules of the pension fund as per usual.