EOH used an intermediary company to hide donations to ANC, Zondo Inquiry told
ENS forensics director Stephen Powell on Wednesday detailed transactions including between EOH, the City of Johannesburg, and Geoff Makhubo’s company before he became the mayor of the metro.
JOHANNESBURG - ENS forensics director Stephen Powell on Wednesday said that EOH Holdings did not only pay the African National Congress (ANC) and its officials to get contracts, but it also hid the donations by paying an intermediary, Mfundi Mobile Networks, for doing no work except to pass on that money to the ANC.
Powell concluded his testimony at the state capture commission, but Deputy Chief Justice Raymond Zondo said that he would return.
He detailed transactions including between EOH, the City of Johannesburg, and Geoff Makhubo’s company before he became the mayor of the metro.
“Mfundi hasn’t done any work for EOH other than managing these donations,” Powell said.
Zondo said in response: “So, Mfundi didn’t sell anything to the ANC and the ANC didn’t sell anything to Mfundi.”
“All they have done is they have been a front for the donations and dispersed payments for expenses for the ANC,” Powell said.
Powell said that Mfundi Mobile Networks was one of the companies that EOH paid for not doing any work in exchange for millions in government contracts.
“It doubles into an accounting irregularity on the EOH side because they are concealing the donation in their books and records. This should have been recorded as a donation and it should have gone to the party if that’s what they chose to do, but instead, it was hidden in this fashion,” he said.
Powell said these donations to the ANC coincided with contracts that EOH scored and he detailed millions of payments made by EOH director Jehan Mackay to Zizi Kodwa, former President Jacob Zuma’s advisor Siyabulela Sintwa, and Reggie Nkabinde.
MASHABA NOT SURPRISED MAKHUBO IS IMPLICATED
Meanwhile, former Joburg mayor, Herman Mashaba, said that he was not surprised that his successor had been implicated in corruption at the state capture commission, saying that it was only the “tip of the iceberg”.
Mashaba, now the leader of Action South Africa, said there was much more evidence against Makhubo.
“This is only the tip of the iceberg. Remember, since I took over the City of Johannesburg, we uncovered R34 billion worth of corruption and in most of these cases, Makhubo was the mastermind of all these activities. Every time I brought these to the attention of society, I was vilified and called names,” he said.