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- The state’s capture commission of inquiry has begun investigating the flow of funds between Regiments Capital, a company owned by current Johannesburg Mayor Geoff Makhubo, and his personal bank account.
- Makhubo maintains that there are no links between the awarding of a tender to the Regiments to administer a fund for the city of Johannesburg and the payments made to Molelwane Consulting.
- He also supported the ANC receiving donations from companies and individuals who are doing business with the state.
The flow of funds between Regiments Capital linked to Gupta, a company owned by Johannesburg Mayor Geoff Makhubo, and his personal bank account was examined by the commission of inquiry into the state’s capture on Friday, raising questions about a potential conflict of interest. .
Since August 2018, the commission has been investigating allegations of state capture, corruption, and fraud in state entities.
On Friday, the investigation’s test lead, Matthew Chaskalson, told Makhubo that his company, Molelwane Consulting, received payments of more than 35 million rand from Regiments Capital between 2008 and 2016, a period during which he was general treasurer. of the ANC. Greater Johannesburg region.
Regiment Capital won contracts, subsequently renewed, in 2006 to manage the Johannesburg sinking fund and Molelwane is said to have received a payment of 10% of the contract from Regiments, according to the test leader.
Chaskalson brought Makhubo’s attention to a payment on August 29, 2015, from Molelwane to Makhubo’s personal bank account, the day after the regiments paid Molelwane R799,000. This came less than a month after Makhubo participate in the decision to award the regiments the Johannesburg fund management contract for another five years. Molelwane he then made a payment of R500,000 to Makhubo’s account.
The mayor of Johannesburg said on Friday that he could only assume the money went to a higher-interest demand account in his name.
In his defense, Makhubo argued that the context of the sequence of events presented to him was not correct, as “Regiments Capital owed Molelwane Consulting and the money was duly invoiced and paid.”
“I don’t know how the payment relates to the council’s decision, they have no relationship.”
Chaskalson told Makhubo that it appeared that there may well have been a relationship between the Regiments and Molelwane, an assessment that Makhubo described as “incorrect.”
Makhubo said he stepped down as director of Molelwane in November 2011. The Regiments’ contract with the city was renewed again in 2011, at a time when Makhubo was the Finance MMC in the city of Johannesburg. He denied having received any improper benefits related to the regiments.
Earlier, Makhubo said in an opening statement that there was nothing wrong with the ANC receiving donations from black-owned companies and people who do business with the state and sympathize with the party.
He claimed that since black-owned companies did not benefit greatly from contracts with the private sector, it was not “unusual” for them to donate to the ANC with funds derived from tenders with the state.
