Brian Molefe is a South African businessman and business executive. Molefe rose to prominence during his tenure as the CEO of the Public Investment Corporation, heading the secretariat as CEO at the beginning of the corporatisation of the PIC in 2003 through 2010, leaving the organisation with assets under management of R900bn at the expiry of this contract. He was previously a political activist and politician. He is best known for his roles as the CEO of the Public Investment Corporation (2003 –2010), CEO of Transnet (2010 –2015) and Eskom (2015 –2016). On 29 August 2022, Molefe was arrested on corruption charges linked to a R93-million corruption and fraud case into the purchase of locomotives for Transnet.[1]

Career

Molefe was involved in political activism between 1985 and 1994, when he joined First National Bank.[2] The same year he joined the Development Bank of Southern Africa.[3] Between 1997 and 2003 he assumed a number of senior positions within the National Treasury most notably as a DDG (Deputy Director-General), including work on intergovernmental relations and asset management.[3]

During his tenure as the CEO of the Public Investment Corporation from 2003 to 2008, he oversaw a growth in assets under management from R300bn to R900bn. He introduced shareholder activism at the PIC and advocated for the transformation of the South African Corporate sector to be more inclusive and representative of indigenous South Africans who had suffered under the policy of apartheid.

He has also held the position of Deputy Director General in the National Treasury responsible for Assets and Liabilities Management. In this position, he was responsible for, amongst others, the management of sovereign debt. He oversaw a fundamental restructuring of South Africa's domestic and foreign debt portfolio between 2000 and 2003.

Molefe was appointed as the CEO of Transnet in February 2011,[4] He oversaw the implementation of the market demand strategy which resulted in improved rail and port operations, which led to profitability during the 2013/2014 financial year.[5]

In 2015, he was appointed CEO of Eskom to address loadshedding. He managed to temporarily end loadshedding, which did not recur until 2018.[6] However, these reductions in loadshedding are partly attributable to decreased demand, due to weakness in the economy; prior investment coming online; and increased financial support from the state.[7] In November 2016, Molefe resigned as CEO of Eskom effective January 2017.[8]

On resigning, Molefe became further embroiled in controversy when he was illegally awarded a large pension fund payout by the Eskom pension fund. The Gauteng North High Court ordered Molefe to repay an amount of R10.3m, which he was not entitled to as per a retirement agreement. He unsuccessfully appealed this ruling to the Constitutional Court. The Eskom Pension Fund launched a court application in which it sought to have the R10.3m judgment enforced.[9]

In January 2017 Molefe was sworn in as a member of Parliament, but he resigned, effective, by 14 May 2017.[10][11] He left to return to the role of CEO at Eskom, but Lynne Brown, the Public Enterprises Minister, rescinded the reappointment.[12]

In 2017 Molefe was briefly and controversially appointed as a Colonel in the South African Army Reserves.[13]

Prosecution

On 3 August 2020 Eskom and the SIU jointly issued summons against Brian Molefe in a bid to reclaim R3.8 billion. Molefe raised no less than 30 exceptions to Eskom's plea. The matter is still to be heard by the North Gauteng High Court.

On 4 January 2022, Part 1 of the Zondo Commission Report was published, and recommended that Molefe be investigated further. This after the previous public protector (Thuli Madonsela) and a parliamentary enquiry had made a similar recommendation. In Part 2 Volume 1 of the Zondo Commission Report, Molefe is identified as one of the “primary architects and implementers of State Capture at Transnet” during his tenure as CEO of Transnet. The report found that Molefe "facilitated the conclusion of irregular contracts at inflated prices, variously through deviations, improper confinements and the changing of tender evaluation criteria, in order to facilitate entry for companies involved in the extensive money laundering scheme" to the advantage of Gupta companies.[14]

The fourth part of the Zondo Commission report, released on 29 April 2022, recommended that Molefe be criminally prosecuted for his alleged involvement in corruption.[15] Molefe was arrested on 29 August.[1]

Educational qualifications

Awards

  • Institutional Investor for the year (2008) – Awarded by Africa Investor Investments Awards
  • Empowerment Leadership Award (2007) – Awarded by Wits Business School/Barloworld Empowerment Awards
  • Newsmaker of the year (2006) – Awarded by Association of Black Securities and Investment Professionals
  • Investment specialist of the year (2004) – Awarded by Black Business Quarterly
  • Financial services achiever of the year (2003) – Awarded by the Association of Black Securities and Investment Professionals

References

  1. 1 2 Chabalala, Jeanette; Morais, Sheldon (29 August 2022). "Brian Molefe, Anoj Singh among four people arrested in R93m locomotive corruption case". News24. Retrieved 29 August 2022.
  2. ↑ "Brian Molefe". Financial Mail. 2007. p. 247. Retrieved 28 May 2022.
  3. 1 2 Creamer, Martin (9 September 2005). "Brian Molefe". Engineering News. Retrieved 28 May 2022.
  4. ↑ "Brian Molefe new Transnet CEO". sanews.gov.za. 18 January 2013. Retrieved 28 April 2020.
  5. ↑ "Transnet posts R5.2bn profit". News24. 1 July 2014. Retrieved 28 May 2022.
  6. ↑ "Load-shedding from 2007 to 2021 — De Ruyter vs other Eskom CEOs". MyBroadband. 11 March 2022. Retrieved 28 May 2022.
  7. ↑ Mfundza Muller, Seán (18 May 2017). "Why Brian Molefe's return to Eskom can't be justified". Mail & Guardian. Retrieved 28 May 2022.
  8. ↑ Merten, Marianne (22 November 2017). "Parliament: In a reality twisting performance, Molefe denies everything". Daily Maverick. Retrieved 28 August 2022.
  9. ↑ "End of the road for Brian Molefe in pension saga". BusinessLIVE. Retrieved 13 October 2020.
  10. ↑ Koyana, Xolani. "No warm welcome for Brian Molefe in Parliament". Retrieved 28 November 2017.
  11. ↑ "Resignation of Mr Brian Molefe as MP". 12 May 2017. Retrieved 26 July 2021.
  12. ↑ "Committee Welcomes Decision to Rescind Reappointment of Eskom CEO". 31 May 2017. Retrieved 26 July 2021.
  13. ↑ Gibson, Erika (11 February 2018). "Molefe's military career on hold". City Press.
  14. ↑ "Judicial Commission of Inquiry into State Capture: Part 2 Volume 1" (PDF).
  15. ↑ Khumalo, Juniour (29 April 2022). "'Rampant corruption': Mosebenzi Zwane, Rajesh Gupta and ex-Eskom bosses must be prosecuted - Zondo". News24. Retrieved 29 April 2022.
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