Brown directs Eskom board to rescind Molefe reappointment

CAPE TOWN - Public Enterprises Minister Lynne Brown has instructed the Eskom board to rescind the re-appointment of Brian Molefe as chief executive of Eskom.

This comes after an inter-ministerial committee appointed by President Jacob Zuma had several discussions about Molefe’s reappointment and reached consensus on his future.

The committee was led by Justice Minister Michael Masutha and included Minister of Finance Malusi Gigaba and his colleague in the Energy Ministry Mmamoloko Kubayi.

WATCH: Inter-ministerial briefing on Eskom

Brown made the announcement in Parliament on Wednesday based on the recommendations of the inter-ministerial committee on Eskom.

“At today’s meeting I directed the board to rescind its decision, and the board must provide me with at least two names within the executive to act as group chief executive.”

Minister Masutha says Eskom made major concessions about Molefe's initial appointment.

“In concluding the initial appointment contract, Eskom and Mr Molefe agreed on pension terms that would have allowed to retire at 50, which is in contravention of Eskom pension and provident fund rules.”

Molefe was re-appointed to the position earlier this month following a dispute about his R30 million pension payout when he stepped down last year after the Public Protector's State of Capture Report revealed details of his relationship with the controversial Gupta family.

BOARD'S MISTAKES MADE IN GOOD FAITH, BUT…

The inter-ministerial committee says it believes the mistakes made by the Eskom board in its decision to reinstate Eskom’s CEO were made in good faith.

But, in the interest of good governance, it can't be condoned.

“This decision does not purport to be a reflection on Mr Molefe, in fact, the IMC took heart from the well-publicised statement that he made on 11 November 2016.”

Molefe announced his resignation in November 2016.

At the time Molefe said he was not properly treated by the former Public Protector Advocate Thuli Madonsela in her investigation.

(Edited by Masechaba Sefularo)

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