Geoff Makhubo, the executive mayor of the City of Johannesburg, is expected to testify before the judicial commission of inquiry into allegations of state capture on Friday.
Evidence leader advocate Matthew Chaskalson told Deputy Chief Justice Raymond Zondo, who chairs the commission, that Makhubo would be testifying about donations to the ANC made by IT service management company EOH and by other companies, including Regiments Capital.
Makhubo was the treasurer-general of the ANC’s greater Johannesburg region from 2008 to 2018.
“He was also MMC for finance when the City of Johannesburg concluded two IT contracts with EOH… and he will be testifying about his role in relation to those contracts,” Chaskalson said on Monday.
“The last topic that will be traversed in the evidence of Mr Makhubo is his relationship with Regiments Capital which is 100% owner of Regiments Fund Managers, which won contracts to manage the sinking funds of Johannesburg,” Chaskalson said.
In 2006, Regiments Fund Managers, a division of Regiments Capital, won a contract to manage the City’s “sinking funds”.
By 2015, Regiments had taken an estimated R300 million in fees.
The investigative journalism centre AmaBhungane previously reported on how Makhubo’s firm, Molelwane Consulting, was given a 10% cut on a controversial contract Regiments won to manage the sinking funds.
The publication also said one of Molelwane’s, and thus Makhubo’s deliverables, was to “maintain… strategic relationships” with the City.
When the contract was signed, Makhubo held no official position in the ANC or the City.
However, when he was elected – first as ANC regional treasurer and then the City’s MMC for finance – a serious conflict of interest arose, the publication stated.
AmaBhungane estimated that, between 2006 and 2015, Molelwane Consulting had received R30 million.
Makhubo has appeared before the ANC’s Integrity Committee over allegations of impropriety involving the City of Johannesburg’s sinking fund. He previously said he was cleared of any wrongdoing by the ANC’s integrity commission, News24 reported.