Cape Town – Public Enterprises Minister Lynne Brown said on Friday she had endorsed the Eskom board’s decision to ask former CEO Brian Molefe to return to the utility to serve out the remainder of his contract.
Brown told reporters she believed the arrangement would be better value for public funds than the board’s earlier decision to pay him out R30 million in pension benefits, which she had vetoed.
“In terms of the board’s proposal, Mr Molefe agreed to serve out the remainder of his original contract and to reconsider the terms of his previous pension arrangements.”
Brown said she felt this was a “better value proposition to the South African fiscus that the previous pension proposal”.
“I was satisfied…and recognised the merit in its proposal on the proviso of its legality.”
It was confirmed earlier on Friday that Molefe would vacate his seat as an ANC MP, to return to the helm of Eskom. The move drew widespread criticism from political parties, including the ruling African National Congress. Molefe had left Eskom to take up a seat as an ANC MP.