NEWS

Eskom: Brian Molefe Is No Longer Our CEO

The board removed him from post on Friday following a government order.

02/06/2017 17:52 SAST | Updated 02/06/2017 17:58 SAST
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Brian Molefe.

Brian Molefe is no longer the group chief executive of Eskom, the parastatal announced on Friday according to News24.

Molefe will also no longer serve as a director on the board of Eskom.

Public Enterprises Minister Lynne Brown had ordered the Eskom board to rescind his reappointment as CEO and the order was executed on Friday morning.

"In giving effect to and on the basis of the Minister's directive contained in the letter dated 31 May 2017, it was resolved that the resolution of the Board of Directors taken on 02 May 2017 is rescinded," said Eskom in a statement.

"Furthermore, it was resolved that the reinstatement agreement concluded between Mr. Molefe and Eskom on 11 May 2017 be rescinded."

This was announced on Wednesday during a media briefing by an inter-ministerial committee on Eskom. Brown said she has asked the board to come up with two alternative candidates to the post.

Read: Expert: The Whole Eskom Board Should Resign After The Brian Molefe Saga

Molefe was reinstated earlier this month after he left the parastatal under a cloud in November last year.

The ANC's national executive committee (NEC) had reportedly resolved that Eskom CEO Brian Molefe should be removed from his post. A year into his tenure at Eskom, after the parastatal's interim results showed increasing costs and a decline in profits for the first half of 2016, Molefe was implicated in former public protector Thuli Madonsela's "State Of Capture" report.

It revealed his close relationship with the Gupta family and their company Tegeta Exploration and Resources, which is a supplier of coal to Eskom. Molefe returned to Eskom on May 15 following a dispute around his pension payout.

This caused a nationwide outcry, with the ANC even calling for the recall of Brown's decision to have Molefe reappointed.