Former Eskom CEO Brian Molefe’s expected R30 million payout has been declined by public enterprises minister Lynne Brown.

Brown said she considered the Eskom board’s reasoning in formulating the proposed pension payout and could not support it.

“I found the argument presented by the board on why the pension arrangement was conceived lacking in legal rationale, and it cannot be substantiated as a performance reward because Mr Molefe has already been granted a performance bonus for his contribution to the turnaround of Eskom,” Brown said in a statement.

She continued to say that the proposed pension payout was also unjustifiable in light of the current financial challenges faced not only by State-Owned Companies (SOCs), but by the country as a whole.

Brown said she has in the past asked Eskom and the other five SOCs in her portfolio to demonstrate financial prudence and social consciousness when considering executive payments.

“Given that I was not a party to the contract of employment concluded between the Eskom board and Mr Molefe, I have instructed the board to urgently engage Mr Molefe and report back to me with an appropriate pension proposal within seven days,” Brown said.

She described the matter as a sensitive and private matter that was handled “so recklessly”.

Brown said she has asked the power utility’s board to investigate how its proposal got into the public domain prior to her having had the opportunity to consider it.