CITY of Joburg mayor Geoff Makhubo, State Security deputy minister Zizi Kodwa are among top ANC leaders who received ‘kickbacks’ or suspicious payments to the tune of R325 000 from businessman Jehan Mackay.
This emerged on Wednesday during the testimony of Steven Powell from ENS Forensices, who is giving evidence about EOH at the Zondo Commission.
He alleged that suspicious payments were made by Mackay, from his personal bank account, to Kodwa, Reggie Nkabinde, and to Siyabulela Sintwa, a former personal assistant to former President Jacob Zuma at the ANC’s Luthuli House headquarters, evidence introduced at the judicial commission of inquiry into state capture shows.
Powell was hired by EOH Holdings in 2019 to investigate a decision by Microsoft Ireland to terminate a contract it had with the company.
He said during that investigation these payments were discovered.
“There was a payment of R21 600 to the FNB account of Mr Zintwa the next date is 19 October and there was another payment to Mr Zintwa of R20 000. There was another payment of R50 000 to Mr Kodwa, again on 3 November 2015 there was another payment of R50 000 to Mr Kodwa.
“Very often the payments seemed to follow a deposit of a similar or a larger amount just prior to the transfer to these individuals, and many of those were referenced as transfers from Tactical Software Solutions,” said Powell.
He said Tactical Software Solutions was a company acquired by EOH in 2011 from Mackay and his father.
EOH subsidiary Tactical Software Solutions (TSS), founded by Mackay and his father Danny and sold to EOH in 2011 for R130.5-million, allegedly paid off corrupt politicians by making payments to Mackay’s personal bank account at FNB, from which he then transferred money to various ANC bigwigs, supposedly for favours for winning government contracts.
The payments are alleged to have been for EOH to be awarded government contracts.
Powell said EOH mandated ENS Africa in February 2019 to conduct a comprehensive forensic investigation into the acquisition, award or execution of several contracts
Powell said ENS Africa found evidence of governance failings and suspected wrongdoing at EOH Holdings, including unsubstantiated payments, suspected tender irregularities and other suspected unethical business dealings.
He said including VAT, and on further investigation, it is currently suspected that the potential irregular payments stand at approximately R865 million.
Powell said Makhubo, the mayor of City of Joburg and ANC regional chairperson, also received payments from EOH Holdings while he was still regional treasurer.
These payments were to assist the ANC Greater Johannesburg with the re-launch of its Youth League.
According to Powell, EOH’s revenue from the City of Johannesburg was R250m a year and the company had a full technical and political strategy for the contract.
The ANC in Johannesburg received R1.5m from EOH ahead of its regional conference.
(SOURCE: INSIDE METROS)