Former Eskom CEO and corruption-accused Brian Molefe has failed in his bid to appeal a court order that he pay back money received from the Eskom Pension & Provident Fund (EPPF).
Eskom group executive for legal and compliance, Mel Govender, told parliament’s Standing Committee on Public Accounts (Scopa) on Wednesday the utility will finally be able to recover the money after protracted legal proceedings.
“The EPPF has been successful in securing an order against Molefe’s pension fund. Eskom is entitled to about R31.5m with interest,” Govender said. “Subsequent to the order Molefe applied for leave to appeal, but this application ... has been dismissed which means that Eskom can now enforce the order to recoup the funds.”
The pension fund has already paid R30m back to Eskom, but it had to wait for the court’s final decisions on Molefe’s appeal to secure repayment from him.
The North Gauteng High Court in July reaffirmed a 2018 high court judgment that had reviewed and set aside an early retirement agreement between Molefe and Eskom in 2016. In terms of that agreement, the state-owned utility paid about R30m to the Eskom Pension & Provident Fund to boost Molefe’s early retirement benefits.
Judge Norman Davis of the North Gauteng High Court in July confirmed the 2018 high court judgment that the pension fund repay the money to Eskom, affirming that the pension agreement between Molefe and Eskom was invalid.
Davis also ordered Molefe to repay the EPPF R9.8m, comprising an initial lump sum of about R7.8m, plus pension payments he received up to October 2019 and taxes of R2m that the fund had paid to Sars.
Update: October 19 2022
This story has been updated with additional information.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.