How did Makhubo end up doing business with the state while in govt?
Makhubo has told the state capture commission that Molelwane and Gupta-linked company regiments capital signed an agreement with the City of Joburg in 2005, three years before he became ANC treasurer in Johannesburg.
JOHANNESBURG - Joburg Mayor Geoff Makhubo said he wanted to leave his company Molelwane when he became MMC for Finance, but the resignation process took longer than expected.
Makhubo has told the state capture commission that Molelwane and Gupta-linked company Regiments Capital signed an agreement with the City of Joburg in 2005, three years before he became African National Congress (ANC) treasurer in Johannesburg.
He's taken the stand on Friday after being implicated in a perceived conflict of interest.
Previous witnesses have accused him of using his company to facilitate the transfer of illicit payments meant for him and other ANC officials.
The commission has presented to Makhubo records that show that his company received an accumulative R35 million from Regiments with some of those funds directed to his personal account.
He is yet to confirm the accuracy of these records but has confirmed that Molelwane continued to be paid 10% of Regiments fees even though he was already Finance MMC.
He said this was part of the initial agreement: “It’s common cause that it continued until 2015 because of an interdict on the second award by a certain company.”
NO CONFLICT OF INTEREST IN REGIMENTS PAYING MONEY TO MY COMPANY
Makhubo maintains that a payment of more than R700,000 from Regiments to his company Molelwane had no relation to a council decision to extend the regiments contract.
He said his company Molelwane continued to be paid 10% of regiments fees even though he was already Finance MMC because that was the initial agreement.
Evidence leader Matthew Chaskalson asked him about a payment of more than R700,000 that was made by Regiments a month after the city decided to renew its contract.
“In the period during over which the mayoral committee considered the Regiments renewal contract and the council awarded it, a month before this the outstanding balance was R993,370 and a month later it was R101,925. Do you not see the potential for a conflict of interest there?”
Makhubo responded: “The way I see it, you are winding down contract and transferring the second one, monies outstanding are being finalised.”
Makhubo said the agreement with the City of Joburg was signed in 2005, three years before he became ANC Johannesburg treasurer
And the contract was expected to end in 2011 before he took public office as Finance MMC, but he had no influence in it continuing until 2015.
The commission has presented to Makhubo records showing that his company received payments of more than R35 million from Regiments from 2008 to 2016.
LISTEN: Geoff Makhubo worked more for Guptas than he did for City of Joburg - Mashaba
WATCH LIVE: State Capture Inquiry, 27 November 2020 Part 2