Lynne Brown puts a stop to Molefe's R30m payout

The Eskom board wanted to give Molefe what has been described as a R30million 'golden handshake', after he spent only 18 months at the power utility. 

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Molefe left Eskom after the Public Protector's State of Capture report detailed his close relationship with the controversial Gupta family. 

Brown says she considered the board's reasoning, but ultimately decided that she cannot support the proposed payout.

"The argument presented by the board on the pension payout lacks in legal rationale and cannot be substantiated as a performance reward.

"Molefe was already granted a performance bonus for 'turning Eskom around,'" said Brown.

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The minister also cited the struggling economy as part of the reason for declining the request. 

"The payout is unjustifiable in light of the current financial challenges faced, not only by state-owned companies (SOCs), but by the country as a whole." 

Brown has instructed the Eskom board to engage Molefe and report back to her with a more appropriate proposal.

She has given the board 7 days to respond.