uMkhonto weSizwe (MK) Party MP and former Eskom CEO Brian Molefe is embroiled in fresh legal trouble after insurance company AIG South Africa filed a R4.4 million lawsuit against him.
The dispute stems from a 2017 management liability insurance policy AIG had with Eskom, covering its executives, including Molefe. Under the agreement, AIG would cover legal defense costs for insured individuals—unless a court later ruled they had gained illegal profits or acted dishonestly, in which case the money would have to be repaid.
AIG paid approximately R4.4 million for Molefe’s legal fees during his tenure. However, subsequent rulings by the Supreme Court of Appeal and Constitutional Court found his conduct unlawful, particularly regarding his controversial reinstatement as Eskom CEO in 2016. Courts ordered him to repay funds received under an invalid pension agreement.
AIG now demands reimbursement, arguing Molefe breached the policy’s terms. Molefe, however, claims he never agreed to the repayment clause and insists the dispute should go to arbitration rather than court.
On August 1, the Gauteng High Court rejected his arbitration argument, ruling that since Molefe denied being bound by the policy, he could not invoke its arbitration clause. Judge Allyson Crutchfield stated the case must proceed in court.
Molefe did not respond to requests for comment. The lawsuit adds to his legal challenges following multiple judicial defeats related to his time at Eskom.