6 days ago
Brian Molefe's ongoing legal battle over R32m Eskom pension fund payout
MK Party MP and former Eskom chief executive Brian Molefe.
Image: Jacques Naude / Independent Newspapers
Former Eskom chief executive Brian Molefe will continue his fight against the power utility's pension and provident fund over the millions of rand he received in a payout in 2017.
In 2018, the DA, trade union Solidarity, and the EFF obtained a Gauteng High Court, Pretoria, order reviewing and setting aside Molefe's reappointment as Eskom boss as well as the proposal granting him early retirement.
At the time, the full bench of the high court – Judges Keoagile Matojane, Hans Fabricius, and Segopotje Mphahlele – also declared any payment or sum of money received by Molefe under any purported agreement between him and Eskom invalid and ordered him to repay the amounts within 10 days.
Molefe unsuccessfully applied for leave to appeal to both the Supreme Court of Appeal and the Constitutional Court.
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In their scathing ruling, the judges found Eskom's decision to waive penalties and buy Molefe an extra 13 years of service totalling R30.1 million after only 15 months' service at the age of 50 stretched incredulity and was unlawful for want of compliance with the Eskom Pension and Provident Fund's (EPPF's) rules.
'What is most disturbing is the total lack of dignity and shame by people in leadership positions who abuse public funds with naked greed for their benefit without a moment's consideration of the circumstances of fellow citizens who live in absolute squalor throughout the country with no basic services,' the high court reasoned.
In July 2022, the EPPF was later directed by Judge Norman Davis to repay Eskom the R32.3m payout, including employer contributions, Molefe's monthly pension contributions, and his performance bonus pension contributions.
Molefe was ordered to repay the fund about R10m together with mora interest, which is charged when payment is not made.
The former Transnet chief executive has maintained that based on his calculations, the net amount that he has to repay is just less than R1.5m.
The EPPF then became entitled to set-off against the amount due by Molefe against the net balance of the Transnet Retirement Fund lump sum he received upon receipt of a tax directive from the SA Revenue Service (Sars) on the tax payable on the amount.
Molefe appealed the July 2022 judgment, and on July 11, 2025, another full bench of the high court – Judges Ronel Tolmay, Mmonoa Teffo and Rochelle Francis-Subbiah – upheld his challenge. Parts of Judge Davis' order were set aside and substituted.
'The matter is referred to oral evidence to determine the amount payable by the appellant (Molefe) to the first respondent (EPPF), before a different judge.
'The first respondent must discover all documents relating to the calculation and flow of money as well as all documents it intends to use during the leading of evidence within 15 days of this order,' the court ruled.
Additionally, according to the judgment, Molefe must discover all documents relating to the calculation and flow of money and all documents he intends to use during the leading of evidence within 15 days of the filing of his documents.
The judges continued: 'The judges stated that actuaries may file supplementary reports after receiving the aforementioned documents, and must do so at least 45 days before the matter is heard.'
Molefe did not respond to requests for comment on Tuesday.
