The Eskom Pension and Provident Fund (EPPF) now says that its decision to grant Eskom CEO Brian Molefe a R30 million pension payout was because he was retrenched. The decision has since been revoked, with public enterprises minister Lynne Brown saying it would be cheaper to return Molefe to his post than to pay him the payout.
The DA is going to court to try to set aside the decision to reinstate him.
According to Business Day, had Molefe been paid out, it would have meant that he was paid out for the remainder of his 5 year term after being in his post for just 18 months, after which he voluntarily resigned.
Business Day reported that there is a lack of clarity around the legality of the pension payout because to qualify for retirement, the EPPF's rules say a person must be at least 55 years old, but Molefe is 50.
EPPF chief executive Sibusiso Luthuli told Business Day that Molefe's case was dealt with as a retrenchment.
He reportedly said that the rules provide for early retirement from the age of 50 provided that the employer makes a payment to the EPPF, to compensate it for the cost related to early retirement.
But it is unclear how Molefe would qualify for early retirement according to the rules, as he reportedly does not appear to have met any of the criteria, including having his post abolished.