Molefe was CEO of Eskom for 18 months before resigning unexpectedly in December after the report linked him to the Gupta family and irregularities in coal contracts awarded to their company Tegeta Exploration and Resources. Molefe said at the time that he would resign in the interests of good corporate governance and to clear his name.
Eskom and Molefe came under fire several weeks ago for a R30-million pension payout for less than two years on the job. Public Enterprises Minister Lynne Brown refused to sanction the payout.
Brown said on Friday Molefe’s reinstatement was the best solution after the parties could not reach agreement on the pension repayment.
The Eskom board rescinded its approval of his early retirement application and reached an agreement with Molefe that he had to repay by the end of this year about R7-million of the pension already paid to him.
Party spokesman Zizi Kodwa however said the ANC leaders would instruct Brown to reverse Molefe’s appointment or dissolve the board, when she meets with Luthuli House on Monday.
Kodwa said the ANC was disappointed with Brown for endorsing a “clearly immoral and illegal” decision of the Eskom board.
Sunday Times reported yesterday that Molefe’s reinstatement could give Moody’s yet another reason to downgrade the sovereign credit rating to junk status.