Joburg mayor Geoff Makhubo had prime seat on EOH gravy train, got ‘donations’ for ANC #StateCaptureinquiry

In his capacity as the ANC treasurer-general for the Joburg branch, Geoff Makhubo colluded with executives at EOH to solicit payments for the party. The Zondo commission has heard how Makhubo slyly played the roles of fundraiser and benefactor, having received cash for his own company, Molelwane. Not a stranger to corrupt dealings, Makhubo was elected mayor of Joburg despite reservations around his associates and business activities in 2019. EOH has been forthcoming about its investigations into tender fraud and corruption, appointing ENSAfrica to probe its books. The findings have not made for a pretty sight as the company endeavours to clean up its image – Bernice Maune

By Bernice Maune 

Joburg mayor Geoff Makhubo has been fingered as having the prime seat in a gravy train driven by EOH and the City of Johannesburg.

Geoff Makhubo was appointed mayor towards the end of last year after Herman Mashaba resigned from the DA and his role. His post came with controversy as he had been implicated in a string of dodgy deals which saw him take home R30m. However, this didn’t prevent him from ascending to the number one position in the city.

Now the Zondo commission has shed light on more information related to how Makhubo solicited payments from EOH’s public service division headed by Jehan Mackay. Forensic investigator Steven Powell has testified that his company, ENSAfrica discovered multiple payments to Molelwane Consulting, a company owned by Makhubo and his wife Florence.

Though Makhubo resigned as a director of Molelwane Consulting in 2019, bank statements show how Molelwane was paid R1,35m in 2012. An invoice from 2016 shows how EOH transferred R507 000 to Molelwane for services rendered on a contract. However, no proof of work can be found.

In another instance, a company called Mfundi Mobile purportedly consulted for EOH on several IT projects for the City of Johannesburg. It was later found that Mfundi Mobile was actually a front company used to extract R34m from the City of Johannesburg through ‘partnering’  with EOH.

Once Mfundi Mobile received payments, it would make deposits to Molelwane Consulting.

In February 2016, Mfundi Mobile paid Molelwane Consulting R200 000 and in April another R50 000. Makhubo then asked for a R50m donation from the EOH.

That same month, Makhubo sent two ANC invoices for expenses worth R503 000. Mfundi Mobile then paid ANC’s office rent for R410 000 and printing costs for R40 000.

In July 2016, EOH would transfer R16m for City of Johannesburg work. This was understood to actually be a donation to the ANC. Later that July, Makhubo sent multiple ANC invoices totalling R4,1m to be paid to cash vehicle Mfundi Mobile.

Powell also exposed evidence showing that:

  • EOH financial executive Patrick Makhubedo would receive emails with instructions from Makhubo and make the payments or forward them to the finance division for processing
  • A contract to upgrade the City of Johannesburg network and services was given to EOH in 2014. An email then followed from Geoff Makhubo to Makhubedo for financial assistance for the ANC greater Johannesburg
  • Makhubedo paid R20 000 for the hiring of the Sandton convention centre
  •  R70 000 was sent to Makhubo by Makhubedo.
  •  On 27 August 2014 Makhubo sent solution pricing proposal totalling R106m for ANC expenses, this was paid out by EOH under customer reference upgrade.
  • R582 000 was paid out to the ANC for a conference for dinner, accommodation, admin and decor. The funds were requested by Makhubo and processed by Makhubedo. Again this was disguised as a payment to the City of Johannesburg.
  • A letter was sent to EOH executive director and shareholder Mackay in 2015 for a host of ANC expenses which included footing the bill for the party’s monthly expenses for several months. Some of the items listed include monthly administration, stipends, vehicle financing, t-shirts, badges and women’s month celebrations. Makhubo requested about R900 000 to R6m with a thank-you note saying “your support is highly appreciated and we thank you in advance for strengthening our democracy”.

According to Powell there was serious collusion between Jehan and government officials. EOH would get advance notice and be placed in advantageous positions to win tenders.

“These types of scenarios would happen often. When these things would go wrong then they would use politically exposed persons to force pressure. They would contact well known politically exposed persons, intervene and suddenly the decision to go out to tender would change,” said Powell.

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Watch Steven Powell’s testimony at the state capture inquiry below. 

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