Court rules against Brian Molefe

Ordered to pay back the money.
Brian Molefe bruised after court ruling. Picture: Bloomberg

In a damning judgment, a full bench of the Gauteng High Court, headed by Judge Matojane, has ruled against Brian Molefe, Eskom and the Minister of Public Enterprises in a case brought by the EFF, the DA and Solidarity.

The High Court found that the decision taken by the Eskom board in November 2016 to accept Brian Molefe’s “early retirement” was unlawful and should be set aside; that the decision taken by the Minister of Public Enterprises to reinstate Molefe as CEO of Eskom, following the rescinding of his ‘early retirement’, was unlawful. As a consequence, the payment of pension benefits to Molefe, of some R10.3 million, was unlawful.

The court ordered that these payments should be repaid within ten days of the order. In addition, the court ruled that Molefe should pay the legal costs incurred by the DA, Solidarity and the EFF.

According to Molefe, the reason that he and the Eskom board agreed that his pension benefits should be calculated to age 63 ‘with penalties waived’ was because he had been “previously employed on some short contracts and had not been in a position to accumulate pension benefits over time”. Judge Matojane disagreed, noting that as he had been employed in a senior position at National Treasury for about seven years, as CEO of the PIC for seven years and following that as CEO of Transnet for four years before joining Eskom. As a consequence he had significant opportunity to accumulate pension benefits, the judge said.

He was scathing:

“The decision by Eskom to waive penalties and buy Mr Molefe an extra 13 years of service totalling R30.1 million after only 15 months service at the age of 50 stretches incredulity and is unlawful for want of compliance with the rule of the EPPF [Eskom Pension & Provident Fund]. What is most disturbing is the total lack of dignity and shame by people in leadership positions who abuse public funds with naked greed for their own benefit without a moment’s consideration of the circumstances of fellow citizens who live in absolute squalor throughout the country with no basic services.”

The rules of the pension fund are quite clear. To qualify for these benefits a (permanent) employee must have worked for the company for at least 10 years and be 55 years of age. Molefe did not qualify in either category. Moreover, he was on a five year contract and thus was not a permanent employee.

“There is a strong inference to be drawn from the above factors that the early retirement agreement was a deliberate scheme devised by Eskom with the involvement of Mr Molefe to afford him pension benefits he was not entitled to. The scheme permitted Mr Molefe to proceed to early retirement at age 50 by buying him extra pensionable service. The scheme was started soon after Mr Molefe’s employment and was deployed after he had publicly stated that he was voluntarily leaving Eskom’s employ.”

According to Solidarity chief executive Dirk Hermann, the matter should not even have gone to court. “It is a sad state of affairs, when high profile South Africans have to go to court in a bid to defend corrupt activities. The unlawful pension award granted to Molefe conforms to the classic definition of corruption,” Hermann said.

According to Hermann the ruling comes as an important victory in the battle against corruption but it is not the end of the road. “The ruling also paves the way for criminal prosecution,” Hermann said.

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Excellent news – the tide is changing whether the Moneyweb doom and gloom commentators like it or not.

You must get excited when its your birthday, expecting bang and getting “poof”

Wow one down. Lets continue with the rest. Take Guptas and Zuma first, then start going down from there.

We can start fixing the country with this formula.

I Previously said in this forum that Brain Molefe is very capable, well experienced and wide awake. I still maintain that, but this matter of pension is a no-brainer – Brain should not have gotten involved in this pirotting scheme or accepted the benefits. Finished “en klaar”.

Brian was simply helping himself like all the others did. It was a feeding frenzy of note and “Fear of missing out” was the unspoken paranoia at all SOE’s.

The way the Eskom Board, and the Eskom Pension Fund Trustees dish out money is indicative of the largess of the ANC (when it comes to other peoples money), and their attitude of entitlement. Their conduct reflects that of Jacob Zuma and his inner (and outer) circle – they are oblivious of their actions. Just consider the recent comments of Ace Magashule (?) They need to be jailed – and throw away the keys.

have him repay plus interest from the date of receipt

Very good news at last. Common sense prevails in the New New South Africa!

Please give him a tissue……

Should Molefi, having been head of PIC, not have clearly known the rules?

He surely did, he just thinks rules don’t apply to him


Take the crooks apart one by one – leave them with nothing. That is actually better than a three year jail term on which he would probably serve almost nothing before being pardoned.

JZ cannot pardon this judgement

“Evil prevails when good men do nothing”

Well done EFF, DA, Solidarity and our strong legal system! You are doing South Africa proud. We all shout “STOP!! NO MORE. WE HAD ENOUGH. THIS IS WHERE IT STOPS!”

We are all behind you. We’ve been rubbed and taken for granted for too long.

The new era has risen.

Well done all!

What makes Molefe’s fall from grace interesting is that he was supposed to be one of the ‘ANC’s good guys’or a man of both competence and energy entrusted with the turnaround of one state-owned entity after another but what intellect and energy cannot do is give integrity.

Integrity is the key ingredient missing from the supposed ANC’s good guys. Simply put, that is the ability to tell truth in the face of power and to do that instantly and consistently.

Without truth you always get corruptibility.

That is why it is going to be near impossible for the ANC to stamp out corruption. They do not have the leaders that tell the truth and they don’t want to own the truth.

Be careful with General Molefe in the army he can organise a coup d’état. LOL.

End of comments.





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