Brian Molefe scores R8.9 million for 8 months work at Eskom
Brian Molefe was paid R8.9 million – including a R2.1 million bonus – for the eight months he served as CEO of Eskom in the 2016/17 financial year.
Molefe was paid R9.5 million in the prior year, but this was for a full 12 months of work. His 2016/17 salary translates to over R1.1 million a month, compared to the R790,000 he earned in 2015/16.
The controversial executive announced his resignation from the group in November 2016, before being sworn in as an ANC MP in early 2017.
In a statement released at the time, Molefe said his resignation was in the interest of good governance, following the Public Protector’s report into state capture, which showed that Molefe was heavily implicated in the business dealings of the Gupta family.
Molefe made a surprise return to Eskom in May 2017, after the Eskom board invited him back to his previous position.
The official position of Eskom, as recorded in its annual report, is that Molefe in fact took early retirement in 2016, which was then later rescinded by the board when it turned out it was not allowed to pay out R30 million to the executive.
Cancelling Molefe’s early retirement bid automatically reinstated his previous contract, Eskom said at the time.
However, the Eskom board’s plans to get Molefe back in the CEO seat took another turn when it was forced to rescind his reappointment by public enterprises minister, Lynne Brown, at the behest of the ANC, following public outcry.
Molefe has now approached the Labour Court to fight for his role back, saying that the reversal by the board was unlawful.
The case has been postponed, and the High Court ruled in June that Molefe may not return to work until such time as the Labour Court has ruled on the matter.
Molefe is but only one controversial CEO who is getting a big payday from the power utility.
Acting CEO, Matshela Koko, who replaced Molefe when he resigned was paid R6.2 million, including a R2.2 million bonus.
Koko was recently suspended from the group for allegedly failing to disclose a conflict of interest in R1 billion in contracts where his stepdaughter has a shareholding in the supplier used.
Eskom’s interim chairperson Zethembe Khoza announced that the utility will be taking disciplinary action against Koko following the finalisation of an investigation into his conduct.
The decision followed an investigation by law firm Cliffe Dekker Hofmeyr and Nkonki.
In total, Eskom paid its directors and group executives R61.5 million in salaries and bonuses. R12.8 million was paid out in short-term bonuses, and R5 million was paid out in long-term bonuses.
Eskom’s results for the 2016/17 financial year showed a staggering 83% drop in group profit to R888 million from R5.1 billion the year before, while the generational business (Eskom Company) posted a loss of R870 million for the year.
Read: Eskom’s profit plummets
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