Mayor Makhubo faces Zondo Commission over EOH payments

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Johannesburg mayor Geoffrey Makhubo.
Johannesburg mayor Geoffrey Makhubo.

Under-fire Johannesburg mayor Geoffrey Makhubo is appearing at the State Capture Commission, testifying about alleged money flows from ICT services company EOH to his consulting firm.

The commission this week heard how governance issues engulfed the JSE-listed company, including how rogue employees and directors thrived on tender fraud, incentivising politically connected individuals to secure contracts.

It was revealed that EOH paid some sub-contractors for “no work done or dubious work done”.

Makhubo was named as one the individuals who irregularly received payments from EOH through his company, Molwewane Consulting.

At the time, Makhubo was treasurer-general for the ANC’s greater Johannesburg region and the city’s finance member of the mayoral committee.

Steven Powell, ENSAfrica lead investigator, who probed the EOH’s tender irregularities, told the commission that Makhubo wrote various e-mails to EOH employee Patrick Makubedu requesting over R6 million in payments to be made to the ANC’s accounts in 2015 alone.

Taking the stand at the commission this morning, Makhubo addressed deputy chief justice Raymond Zondo, vowing to co-operate with the commission's work.

He told the commission that it was not unusual for companies to contribute or donate money to the ANC.

Makhubo also added there is a need to relook at the political party funding, but cautioned that he can't imagine how feasible it would be to exclude businesses as donors.

Explaining further on the political funding, he said 75% of the party's funding comes from private donors.

Yesterday, Herman Mashaba, former Johannesburg mayor, called for the urgent removal of his successor, after the latter was named as a beneficiary of “suspicious payments” made by ICT services company EOH to politically exposed individuals.

The official opposition, the Democratic Alliance (DA), picketed against Makhubo today outside the commission, also calling for his removal.

“Makhubo’s company Molelwane Consulting is alleged to have received R30 million in bribes from Regiments Capital, a firm deeply implicated in state capture, all in exchange for maintaining strategic relationships with the City of Johannesburg during his tenure as member of the mayoral committee on finance,” the DA said in a statement.

“Furthermore, Makhubo is also alleged to have solicited regular donations worth millions from an information technology company, EOH Holdings, while he was the ANC Johannesburg regional treasurer, all in exchange for tenders at the City of Johannesburg.

“These are just two examples that illustrate why Geoff Makhubo should be removed from his mayoral position. The residents of Johannesburg are being led by a man tainted with corruption,” the opposition party says.

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