New evidence alleges Geoff Makhubo scored millions in deal for City of Joburg

New evidence alleges Geoff Makhubo scored millions in deal for City of Joburg

- New evidence has surfaced to suggest that Geoff Makhubo, ANC chair for Joburg, has allegedly received R30 million in fees from a CoJ contract

- The contract between Regiments, a financial services firm, and CoJ related to the management of a large sum of money meant to repay the City’s debt

- Makhubo’s company, Molelwane, allegedly received 10% of the R300 Million in fees paid to Regiments

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New evidence has surfaced suggesting that Geoff Makhubo, ANC chair for Johannesburg and a possible mayoral candidate, has received millions from the City of Johannesburg in his capacity as an influence broker.

Regiments, a financial services firm that manages funds on the behalf of the City of Johannesburg, has allegedly paid the ANC leader millions to pave its way into securing one of the City’s most lucrative and suspect contracts.

According to a report by News24, Makhubo has pocketed approximately R30 million from this deal. Emails and documents put forward by investigative journalists amaBhungane have revealed to the public that Regiments agreed to pay 10% of the fees received from the City to Molelwane Consulting, a company owned by Makhubo.

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Regiments Fund Managers received a contract in 2006 to manage the city’s ‘sinking fund’, a fund containing billions of rand which had been put aside to repay debt. By 2015 the financial services firm had racked up approximately R300 million in fees alone.

Whilst Makhubo denies his position as an ‘influence broker’ and insists the deal was above board the contract between himself and the firm stipulated that his company would supply initial financial analysis as well as maintaining ‘strategic relationships with CoJ’.

The contract between Regiments and Molelwane endured for almost a decade, and as far as could be confirmed, so did Molelwane’s 10% fees.

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At the time of the agreement, Makhubo did not preside over an official position for the ANC, nor the city. He was rumoured to be an ally of Parks Tau who at that time had been the member of the mayoral committee for finance. The deal between Regiments and the City of Joburg was included in Tau’s portfolio.

As Makhubo rose in political standing his influence increased and improved his chances of opening doors and ability to smooth over political obstacles.

Makhubo was elected treasurer of the ANC’s powerful Joburg region in 2008. A few years later in 2011 Tau was mayor and Makhubo took over as MMC for finance, putting the Regiments contract in his hands.

Tau responded to the allegations in a written statement through his spokeperson saying that:

“I wish to clarify that I was aware that Regiments and Molelwane had a business relationship. However, I was not privy to their internal business arrangements of transactions.”

He went on to say that Makhubo, on his appointment, had committed to wind down his business interests “which ensured that he was not ‘the player’ and a ‘referee’ on the said contract”.

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Source: Briefly.co.za

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