Ngubane: Brown was informed about Brian Molefe's pension plan
Former Eskom board chairperson Ben Ngubane has been testifying before a parliamentary inquiry about a controversial pension agreement that the company entered into with former CEO Brian Molefe.
CAPE TOWN - Former Eskom board chairperson Ben Ngubane has been testifying before a parliamentary inquiry about a controversial pension agreement that the company entered into with former chief executive Brian Molefe.
Ngubane says that it only became apparent to him when the controversy erupted over the R30 million due to Molefe, that former Public Enterprises Minister Lynne Brown had not received letters regarding this arrangement agreed to by the board.
In January, the North Gauteng High Court ordered that Molefe pay back the money he’s received to date.
He is appealing that ruling.
Ngubane claims that Brown was kept informed about negotiations around a pension plan for Molefe through letters sent to her office.
This included waiving costs for early retirement.
Ngubane has told the inquiry that the board also decided to increase the long-term incentive award for Molefe to double his annual pensionable earnings all to counter losses he would suffer if his five year contract was not renewed.
"The change from permanent employment to fixed-term caused a lot of problems in terms of handling Mr Molefe's benefits and so on."
He says that by January 2017, Molefe had already been paid 30% of his pension benefit and was receiving monthly payments of R100,000.
WATCH: Eskom inquiry: Ben Ngubane appears before MPs