We have committed to keeping you informed on the Brian Molefe pension matter. The latest is that the High Court of South Africa (Gauteng Division, Pretoria) handed down a ruling yesterday following the hearing in March this year. You will remember the EPPF took legal action against Mr Molefe to compel him to pay back the money in line with the original court judgment from 2018. Mr Molefe had appealed the matter all the way to the Constitutional Court in 2019. Yesterday’s ruling means Mr Molefe will have to pay back as directed by the court.
What was the legal action?
The legal action taken by the EPPF included asking the High Court to determine and order how much needed to be repaid considering Mr Molefe’s own contributions to the Fund while he was an employee of Eskom, his accumulated retirements savings transferred to the EPPF from his previous employer, as well as the related tax implications and applicable interest.
What will the EPPF do following the judgment?
In terms of the judgment and in line with what the EPPF requested the court to adjudicate, Mr Molefe has been directed to pay to the EPPF R9 985 540,64 plus interest calculated from 31 October 2019 up to the date he pays the Fund. The EPPF has been allowed to set off a portion of this amount against the money that was transferred from Mr Molefe’s previous retirement savings to the Fund. In addition, the court has also provided direction as to how the EPPF should handle refunds to Eskom. The EPPF will therefore pay back to Eskom the balance of the R30 103 915,62 that it had received from Eskom.
The EPPF continues to act in your best interests
Chief Executive and Principal Officer Shafeeq Abrahams has welcomed the court decision. He has again underscored that the EPPF has strengthened its controls and rules to ensure that it is safeguarded from similar incidents.
“We continue to invest time and resources in ensuring solid pension fund management that delivers the required financial returns to our members, and makes a positive impact on society through good governance and responsible leadership,” explains Abrahams.
The EPPF remains steadfast in protecting and advancing the interests of members and pensioners.
Eskom Pension and Provident Fund