ANC Joburg chair to appear before integrity committee over sinking fund allegations

2018-12-06 19:49
Geoffrey Makhubo. (Nelius Rademan/Foto24 Gauteng)

Geoffrey Makhubo. (Nelius Rademan/Foto24 Gauteng)

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ANC Johannesburg chairperson Geoff Makhubo is to appear before the party's Integrity Committee over allegations of impropriety involving the City of Johannesburg Sinking Fund.

In a statement, the party noted a report from amaBhungane on the alleged impropriety.

The investigative journalism centre referred to "new evidence" which suggests that Makhubo scored an estimated R30m from the City of Johannesburg by acting as an influence broker.

In 2006, Regiments Fund Managers, a division of Regiments Capital, received a contract to manage the City’s "sinking fund" – a pool of several billion rand put aside to meet the City's future debt repayments. 

READ: Joburg ANC leader scored millions from city contract

By 2015, Regiments had taken an estimated R300m in fees.

The ANC said Makhubo briefed it on the matter.

"Makhubo has already committed to avail himself to provide all relevant information to relevant ANC structures including the Integrity Committee," a statement read.

Emails and documents amaBhungane obtained, showed that Regiments agreed to pay 10% in "fees" to Makhubo's company, Molelwane Consulting.

In 2011, Makhubo became Member of the Mayoral Committee for Finance, placing the Regiments sinking fund contract directly within his sphere of responsibility. 

Johannesburg Mayor Herman Mashaba took to Twitter to further publicise the amaBhungane article, hashtagging it #ANCLootedJozi

He said "the report shows how Cllr Geoff Makhubo & Cllr Parks Tau – orchestrated a windfall of at least R30m for Makhubo by allowing him to unduly act as a broker for Regiments, giving the fund managers unfettered access to lucrative deals within the City.

Mashaba also accused former mayor Parks Tau of failing to not only disclose the information, but of assisting Makhubo to facilitate deals for Regiments.

Read more on:    anc  |  geoff makhubo

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