6 December 2018

South Africa: Geoff Makhubo, Jo'burg ANC Leader, Scored Millions From City Contract

analysis

For more than a decade, financial services firm Regiments has managed billions on behalf of the City of Johannesburg. It is one of the City's most lucrative but controversial contracts. New evidence shows that Regiments paid a top ANC leader millions to smooth its way.

Geoff Makhubo - chair of the ANC's powerful Johannesburg region and prospective mayoral candidate - scored an estimated R30-million from the City of Johannesburg by acting as an influence broker, new evidence suggests.

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.

By 2015, Regiments had taken an estimated R300-million in fees.

Emails and documents obtained by amaBhungane reveal for the first time publicly that Regiments agreed to pay 10% of those fees to Makhubo's company, Molelwane Consulting.

Makhubo denies acting as an "influence broker" and says the deal was above board. While their contract stipulated that Molelwane would provide some initial financial analysis, significantly it also required Molelwane to "maintain... strategic relationships with CoJ".

The 2006 Regiments sinking fund contract with the City endured for almost ten years -...

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