Eskom to enforce court order to recover millions paid to Brian Molefe in pension benefits

Eskom has secured a high court order to force its former CEO Brian Molefe to pay back R9.9 million, plus interest, to its pension fund.

Brian Molefe’s pension payouts

The power utility on Wednesday said the Pretoria High Court dismissed Molefe’s leave to appeal application, challenging its order in July, for him to return pension payouts he unlawfully received from Eskom in 2016.

“This application for leave to appeal has been dismissed, which means Eskom can now enforce the order,” said Eskom’s legal head Mel Govender.

Govender made the announcement during Eskom’s management’s appearance before parliament’s Standing Committee on Public Accounts (Scopa).

ALSO READ: Eskom recovers R30m unlawfully paid to Brian Molefe’s pension fund

In November 2016, Molefe resigned from Eskom with a R30 million early retirement package. He was then reinstated as CEO in May 2017 just five months after he stepped down.

On 25 January 2018, the high court ruled that the payouts to Molefe were “patently unlawful” after trade union Solidarity and the Democratic Alliance (DA) took Eskom to court.

A second court judgment on 4 July 2022 confirmed the ruling and ordered Eskom’s Pension and Provident Fund (EPPF) to repay R30 million to the parastatal for the pension payouts received by Molefe.

However, the former CEO filed a leave to appeal application. The EPPF opposed his application.

Pension benefits frozen

Meanwhile, Eskom CEO André de Ruyter also confirmed that the power utility had taken steps to freeze the pension benefits of employees who resigned while facing disciplinary proceedings.

“We have implemented steps to freeze the pensions of individuals who resign in the face of disciplinary proceedings in order to create a disincentive to people not following the disciplinary process,” De Ruyter said.

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