Eskom’s Molefe may score R10 million bonus
Eskom CEO Brian Molefe may still be in line for a bonus payout despite announcing his resignation earlier this month, according to a report in the Sunday Times.
Molefe announced that he would step down from the state energy company at the end of 2016, following allegations contained in the Public Protector report into alleged state capture.
The report implicated Molefe and Eskom in apparent corrupt behaviour in pre-paying Gupta-linked mining company, Tegeta Exploration, almost R1 billion for coal.
The money paid by Eskom was used to buy Optimum coal mines from Glencore – a company which was allegedly bullied into selling the mine, by a Eskom not allowing it to renegotiate coal contracts, which were forcing Optimum to run at a loss.
Molefe was implicated in the matter, with records showing 58 calls between him and Ajay Guptas during the period. Molefe has admitted that he is a very good friend of the Gutpas.
However, he maintains that the Public Protector never afforded him an opportunity to give his version of events.
According to the Sunday Times, Molefe’s R9.5 million bonus was due in June 2018 provided he met performance requirements.
Molefe earned a total annual package of R8 million, having been appointed permanent CEO in September last year. He received a bonus of 7,502,880 in April last year, having joined the company in an acting CEO basis then.
The Sunday Times said that Eskom’s policy states that executives forfeit their shares if they do not remain for the duration of the three-year period.
It said that would have needed to meet financial targets, ensure business, and future power sustainability in order to receive his bonus.
“Awards only vest if and to the extent that these targets are met.”
Eskom’s mid-term results showed that the company’s revenue increased by 10.5% year-on-year to R97.1 billion; the accelerated maintenance programme improved plant availability from 71.23% to 78.50%; and the company had staved off load sheeding for approaching 500 days.
Eskom told the Sunday Times that it had not discussed Molefe’s bonus.
The full report can be found in the 20 November 2016 edition of the Sunday Times.
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