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Brian Molefe ordered to repay R10m to Eskom Pension and Provident Fund

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The long-running saga concerning Brian Molefe and the unlawful pension benefits he received from Eskom Pension and Provident Fund (EPPF), in connection with his 15 months of employment at Eskom, came to a head on 4 July, with the Pretoria High Court handing down judgment that Molefe must repay the fund R10 million, plus interest.

The parties in the court action comprised EPPF as the applicant, together with Molefe (first respondent), Eskom Holdings (second respondent) and the commissioner of the South African Revenue Service (Sars) as the third respondent. Molefe was also ordered by the court to pay the legal costs incurred by both EPPF and Sars in the matter.

In his ruling, Judge Norman Davis also directed the EPPF to repay Eskom the following amounts:

The amount of R30.1 million which was unlawfully paid to the fund, together with interest.
The amount of R1.3 million, being Eskom’s employer contributions on behalf of Molefe, together with interest.
Molefe’s own monthly pension contributions amounting to R727 547 plus his performance bonus pension contributions of R123 332 together with interest. (Eskom is directed to repay the post-tax amount to Molefe).
The judge ordered Molefe to repay EPPF a total of R9.8 million, comprising the lump sum of R7.8 million, plus pension payments totalling R185 161 to the month of October 2019, in addition to taxes of R2 million that the fund had paid to Sars.
In its judgment, the full bench opined: “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 own benefit without a moment’s consideration of the circumstances of fellow citizens who live in absolute squalor throughout the country with no basic services”.

Molefe unsuccessfully applied for leave to appeal the full bench decision to both the Supreme Court of Appeal and the Constitutional Court, the latter being refused on 8 August 2019.

In the latest ruling this week, Judge Davis dismissed Molefe’s arguments that the matter was capable of resolution via mediation, that there are material disputes of fact, that the issues raised have already been determined, and that there is a “need for judicial deference in matters that fall outside the court’s area of proficiency”.

On Molefe’s argument that the matter had already been determined by the full bench, the court found that the fact that the order of the full court had not yet been implemented and that Molefe did not comply with a demand to repay the amount owing, justified the EPPF’s latest court application.

Source: moneyweb

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Source Link Brian Molefe ordered to repay R10m to Eskom Pension and Provident Fund

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