Herman Mashaba lays charges against Geoff Makhubo and Parks Tau
Johannesburg mayor Herman Mashaba has laid criminal charges against ANC bigwigs Parks Tau and Geoff Makhubo after the pair were fingered in a tender misconduct worth R10m in a report by Amabhungane Centre for Investigative Journalism. Makhubo is the Joburg ANC chairperson, while Tau was the mayor of Johannesburg at the time the tender was awarded.
According to the report Makhubo's company, Molelwane Consulting, received a 10% fee of R30m from the R300m tender awarded to Regiments Fund Managers, a fund managing entity and division of Regiments Capital. The tender was to manage the city's fund established to meet its future debt repayments.
“A contract signed by Makhubo shows that Regiments agreed to pay 10% of its fees to Makhubo’s company, Molelwane Consulting, in exchange for Makhubo’s 'maintenance of strategic relationships with the COJ [City of Johannesburg]'.
“With the blessing and alleged aide of Cllr Tau - who has admitted on record that he knew of the relationship between Makhubo and Regiments - Cllr Makhubo, who was tasked with exercising political oversight on one of the City’s largest contracts, was allowed to feast off the same set of contracts he had oversight over… Further to this, when the tender process in 2011 had excluded Regiments, it was Parks Tau, as the Mayor of the City, who stopped the tender, citing a lack of social responsibility in the requirements of bidders.” Mashaba said.
Speaking outside of the Johannesburg Central police station, Mashaba said Tau hired Makhubo as a member of the mayoral committee for finance while he was aware of the relationship between Molelwane and Regiments Fund Managers.
According to Mashaba, the deal also helped the in funding the ANC in Johannesburg of which Makhubo was chair at the time.
“Further, it is alleged that the role of Cllr Parks Tau was more than that of a bystander. Cllr Tau not only knew of the crooked deal, it is suspected that Cllr Tau allowed the arrangement to take place so as to also benefit his political party the ANC.”