Public Enterprises minister Lynn Brown has blocked the South African power utility Eskom from giving its former chief executive, Brian Molefe a sum of 30 million rand pension payout.
He was largely credited with stabilising electricity supply following months of rolling blackouts, resigned last year after he was implicated in the State Capture report by the former Public Protector Thuli Madonsela which linked him to the controversial Gupta family accused of capturing the state..
Molefe has denied any wrongdoing.
“I have considered the Eskom board’s reasoning in formulating the proposed pension payout and cannot support it,” public enterprises minister Lynne Brown said in a statement.
Brown said the payout could not be seen as a performance reward, as Molefe had already received a bonus for his role in turning Eskom around.
“Nor is the proposed pension payout justifiable in light of the current financial challenges faced not only by state-owned companies, but by the country as a whole,” she said.
Molefe is currently serving as the Member of Parliament (MP) for the ruling party African National Congress (ANC).