I have received a letter from the lawyers of ANC Regional Chairperson, Cllr Geoff Makhubo, giving me 10 days to publicly retract and apologise for alleging that there was a corrupt relationship between Regiments, a company at the centre of state capture, and Cllr Makhubo.
Should I fail to comply with this demand, Cllr Makhubo intends instituting civil proceedings in which he seeks to claim R5 million in damages from me.
It is evident that Cllr Makhubo is not satisfied with the estimated R30 million he has already allegedly received from his dodgy relationship with Regiments.
Makhubo will receive no such retraction or apology and I look forward to defending this matter in an open court of law in which all the evidence against Makhubo and Regiments will become public record.
Indeed, the only court that the disgraced leader of the ANC in Johannesburg belongs in is a criminal court.
On 6 December 2018, amaBhungane released an exposé, which showed how the past ANC leadership of the City of Johannesburg lined their own pockets at the expense of the residents.
On 10 December 2018, in light of the overwhelming evidence provided in the amaBhungane’s report into alleged collusion between Regiments Fund Managers, former City Mayor, Cllr Parks Tau, and former MMC for Finance, Cllr Geoff Makhubo, I opened a criminal case at the Johannesburg Central Police Station.
The charges include fraud, corruption, money laundering and racketeering against both Geoff Makhubo and Parks Tau.
In 2006, Regiments Fund Managers received a contract to manage the City’s “sinking fund” - a pool worth billions of Rand set aside to meet the City’s future debt repayment needs.
By 2015, Regiments had amassed an estimated R300-million in fees.
A contract signed by Makhubo shows that Regiments agreed to pay 10% of its fees to Makhubo’s company, Molelwane Consulting, in exchange for Makhubo’s “maintenance of strategic relationships with the COJ [City of Johannesburg].”
This meant that Makhubo, the former MMC of Finance in the City, who was tasked with exercising political oversight on one of the City’s largest contracts, was also gorging himself on the very same contract.
Importantly, during his tenure as the MMC of Finance, Makhubo failed to relinquish his 67% stake in Molelwane Consulting. The City’s Integrity Commissioner has confirmed that up until 2018, Makhubo has officially declared his interest in said company.
More so, Tau, in his roles as MMC for Finance and as later as Mayor failed to not only disclose this information but assisted Makhubo in facilitating deals for Regiments.
In his response to amaBhungane, Tau admitted that, “I was aware that Regiments and Molelwane had a business relationship.”
The City, however, had no knowledge of such a relationship. This knowledge was kept in secret and behind closed doors.
By 2011, the amaBhungane exposé suggested that Regiments had already “invested” quite heavily in both Tau and Makhubo – apart from Molelwane’s 10% stake.
The article shows that not only was Regiments a regular donor to ANC coffers, but that the company had allied itself with ANC cadres for some of its other BEE deals. One such deal shows how both Makhubo’s and Tau’s wives received a lucrative set of shares then worth R3-million; the shares are now said to be worth approximately R50-million.
The depth of criminality and the arrogance displayed by the ANC, Makhubo and Tau is astounding to say the least.
What is clear from the amaBhungane exposé is that Regiments Capital bought influence in the ANC by benefitting its leadership, their families and paying for the ANC’s Regional Elective Conference.
The full story can be read at the following link: https://www.dailymaverick.co.za/article/2018-12-06-geoff-makhubo-joburg-anc-leader-scored-millions-from-city-contract/
The City is at an advanced stage of conducting its own forensic investigation into this matter. Once completed, and given the serious nature of this criminality, I have instructed General Shadrack Sibiya, the Head of the City’s Group Forensic and Investigation Services Unit, to set up a meeting with the top leadership of the Hawks to ensure that every effort is made to see that this blatant criminality is met with the full might of the law.
Since coming into office, the multi-party coalition government has committed itself to ridding the City of rampant corruption which was allowed to fester within the City under the leadership of the ANC.
The ANC, and particularly Cllr Geoff Makhubo and Cllr Parks Tau, have consistently fought the multi-party government’s efforts to combat corruption in the City.
It is now clear to see why.
Makhubo’s desperate efforts to silence me will not work. I look forward to defending our resident’s right to know the truth.
Cllr Herman Mashaba
Executive Mayor
City of Joburg
Media enquiries:
Luyanda Mfeka
Director: Mayoral Communications
Office of the Executive Mayor
Cell: 076 171 5978
Email: luyandam@joburg.org.za
