The Pretoria High Court announced on Friday, June 7, 2024, that Corruption Watch has withdrawn its case against former Eskom CEO Brian Molefe and other high-ranking officials. The case, filed in November 2018, alleged gross negligence and breaches of statutory duties by the implicated directors.
Molefe, who has consistently maintained his innocence, was accused alongside four other officials. The lawsuit sought to declare them delinquent directors under section 162(5)(c) of the Companies Act and requested punitive costs against them, including the costs of three counsel.
Molefe served as acting CEO from April 2015 and was appointed permanently in September 2015, resigning in November 2016. During his time at Eskom, Molefe made significant improvements, including:
– Improved financial performance and operational stability
– Reduced loadshedding (scheduled power cuts due to a shortage of supply), which had been a significant issue before his leadership
– Increased revenue from higher electricity tariffs and cost control measures, resulting in a net profit of R4.6 billion in the financial year ending March 2016, up from R200 million in the previous year
Despite these improvements, Molefe’s leadership was also overshadowed by legal battles, including a contentious R30 million pension payout that was deemed unlawful by the Supreme Court of Appeal.
The withdrawal of the case brings closure to a long-standing legal battle and allows Molefe to continue his efforts to clear his name. The agreement between the parties to bear their own costs means that the case has been dropped, and the parties have reached a settlement.
In a statement captured in the withdrawal paper, the applicant withdrew the application against the Fourth Respondent (Molefe) by agreement between the Parties, with each Party bearing their own costs.
The outcome is a significant vindication for Molefe, who has consistently maintained that the allegations against him were politically motivated. With this ruling, Molefe can finally put the legal battles behind him and focus on restoring his reputation.
