Minister clarifies Molefe's return to Eskom
Public Enterprises Minister Lynne Brown says Brian Molefe accepted a proposal to serve out the remainder of his contact at the power utility.
Molefe resigned as Eskom's CEO after he was personally named in the Public Protector's state capture report as having close ties with the controversial Gupta family.
He resigned as Eskom CEO, saying the report has caused harm to the reputation of the power utility as well as to his own.
Brown clarified Molefe's return, following widespread public anger.
"In terms of the board's proposal, Mr Molefe agreed to serve out the remainder of his original contract and to reconsider the terms of his contract that resulted in the previous pension arrangement, the one that I rejected to.
Brown rejected a R30 million pay-out to Molefe.
The minister says Molefe's proposal presents a significantly better value proposition to the South African fiscus, than the previous pension proposal.
"I informed the board I was satisfied with his revaluation," says Brown.
Brown says she the Department of Public Enterprises will work with state owned companies (SOC) regarding pensions.
"I have asked my department to work with state owned companies to ensure that the pension packages negotiated with executives at state owned companies are in line with the Cabinet approved remuneration standards that is part of the SOC reform process."