Today's Labour News

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eskomBusinessLive reports that Eskom Pension and Provident Fund (EPPF) CE Sibusiso Luthuli has justified the fund’s decision to grant Eskom CE Brian Molefe a R30m ‘early retirement’ pension payout on the basis of a rule pertaining to retrenchment.  

The decision, which has since been revoked, would have equated to paying out Molefe for the remainder of his five-year contract, of which only 18 months had been worked when he announced his voluntary resignation.  Public Enterprises Minister Lynne Brown said last week she disapproved of the early retirement payment and decided that returning Molefe to his post at Eskom would be cheaper for the fiscus than the pension payment.  However, controversy has raged over whether Molefe’s subsequent "reinstatement" was legal, with the DA on Monday asking a court to set it aside.  There has also been murkiness around the legality of the pension payment as the fund’s rules state that to qualify for early retirement, a person must be at least 55 years old.  Molefe is 50.  After numerous inquiries, Luthuli responded on Tuesday, saying Molefe’s case was, in fact, dealt with as a retrenchment.  Luthuli did not explain how Molefe, who voluntarily resigned, would qualify for retrenchment.

  • Read this report by Carol Paton in full at BusinessLive
  • See too, Governance board suggested ten year pension for Molefe, says Ngubane, at Fin24
  • And also, Molefe ‘retired’ to protect new wife from media frenzy, claims Eskom chair, at Fin24

Get other news reports at the SA Labour News home page