Outa welcomes Brown’s decision to refuse Molefe’s R30m pension payout
The Organisation Undoing Tax Abuse (Outa) on Monday welcomed Public Enterprises Minister Lynne Brown’s decision to decline State-owned electricity provider Eskom’s proposal to pay its former CEO Brian Molefe a R30-million pension payout, noting that it was setting a precedent by placing an end to the “incessant and unnecessary golden handshakes” paid to officials.
Brown said she could not support the board’s reasons for the payout. "I found the argument presented by the board on why the pension arrangement was conceived lacking in legal rationale and it cannot be substantiated as a performance reward, as Molefe has already been granted a performance bonus for his contribution to the turnaround of Eskom,” she said.
Further, Brown noted that the proposed pension payout was not justifiable in light of the current financial challenges faced not only by State-owned companies (SOCs) but by the country as a whole.
Outa chairperson Wayne Duvenage said golden handshakes have frustrated the public for far too long and called on Brown to “scrutinise and question” the Eskom board's request for the pension payout and to “hold them accountable for their unacceptable conduct”.
“It is clear to Outa that the Molefe payout scandal, along with many other actions resulting in wasteful expenditure and gross maladministration, points to poor leadership, highly questionable conduct and a board that needs to be replaced,” he noted.
Brown further instructed the Eskom board to “urgently” engage with Molefe and report back on a new pension proposal within a week.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.
VISIT SHOWROOM
Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
