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Geoff Makhubo, Mayor of Johannesburg. Image: supplied
POLITICS
Johannesburg Mayor Geoff Makhubo is being criticized for having used his “influence” to obtain donations for the ANC in the region from information technology (IT) service management company EOH in exchange for channeling tenders for the city to the IT giant.
This came up in the Zondo state capture commission on Wednesday during the testimony of ENSafrica’s chief forensic analyst Steven Powell.
According to Powell, EOH Holdings funded the ANC in Johannesburg just as the city of Johannesburg had a tender to upgrade its IT infrastructure.
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Powell testified that there were many donation requests at the time of the tender award. He said the 2016 tender to upgrade the city’s SAP system was worth R404 million. “It is simply unheard of; it’s just wrong. “
He told the chairman of the commission, Supreme Court Vice President Raymond Zondo, that the subsidiary, EOH Mthombo, received information that the city of Johannesburg was about to announce the SAP upgrade tender. The City of Johannesburg’s EOH revenue was R250 million a year and the company had a complete technical and political strategy for the contract.
Powell detailed two particular periods in which these events unfolded, 2013/14 and 2015/16, when Makhubo was the ANC and MMC Johannesburg regional treasurer for finance.
During these time periods, the ANC in the Greater Johannesburg region was preparing to host regional conferences for the parent body, the ANC Youth League, the Veterans League, and various public campaigns, all fully paid for by EOH, as well as elections for the local government. in 2016, which saw them lose an absolute majority in the city.
Some of the money was channeled to a company of which Makhubo and a relative were active directors.
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Patrick Makhubedu of EOH Managed Services was the central figure, the commission heard, facilitating the payments and eventually writing letters of appreciation from the ANC, which would be signed by Makhubo.
“R582,000 was paid to the ANC for a conference for dinner, accommodation, administration and decoration. The funds were requested by Makhubo and processed by Makhubedu. Once again, President, this was disguised as a payment to the city of Johannesburg. ” Powell said.
He explained that part of the political strategy was to meet with the “people” of former mayor Parks Tau.
Tau was Mayor of Johannesburg from 2011 to 2016 and is now Deputy Minister for Cooperative Governance and Traditional Affairs.
Makhubo’s company, Molelwane Consulting, also received donations from EOH, and no formal bidding process was carried out before the bids were awarded to EOH, according to Powell. He added that although Makhubo resigned as a director of Molelwane Consulting in 2019, the bank statements show how Molelwane was paid R1.35 million in 2012. A 2016 invoice shows how EOH transferred R507,000 to Molelwane for services provided under a contract. . However, no proof of work can be found.
Powell said the bids were awarded in exchange for donations.
The ANC Tshwane region also requested EOH’s help to pay its service providers one week before its conference in September 2014.
According to Powell, in 2015 a letter was sent to EOH CEO and shareholder Jehan Mackay for a series of ANC expenses that included paying the bill for the party’s monthly expenses over several months.
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Some of the items listed include monthly administration, stipends, vehicle financing, t-shirts, badges, and Women’s Month celebrations. Makhubo requested between R900,000 and R6 million with a thank you note saying: “Your support is greatly appreciated and we thank you in advance for strengthening our democracy.”
Makhubo is expected to appear before the commission on Friday.
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