JOHANNESBURG Mayor Geoff Makhubo has denied that there may have been a conflict of interest in his involvement with a company doing business with the city during his time as a member of the mayoral committee.
Makhubo is appearing at the State Capture Commission of Inquiry after he was accused of using his influence to source donations for the African National Congress (ANC) from IT firm, EOH and Regiments Capital during his time as the party’s Joburg treasurer.
The initial contract between the City of Johannesburg and Regiments Capital kicked off before Makhubo came into public office.
The contract was renewed in 2011, during which time Makhubo had taken up the MMC for Finance post in the city.
The commission heard how Makhubo had a 67% stake in Molelwane Consulting which received a 10% cheque from Regiments Capital.
Makhubo admitted he was present when the mayoral committee he served in approved the renewal of a contract between Regiments Capital and the city
“I don’t preside over a contract and secondly at that point I did not see that there was a conflict. I declared that I owned Molelwane Consulting and I would not do anything to benefit the contract in the city,” Makhubo said on Friday.
Makhubo told the commission that he declared his interests to the city, adding he played no part in the renewed contract in 2011.
“Councillors do not participate in bid specification, they do not participate in bid evaluation, they don’t participate in executive acquisitions committee. The only time that a report would come to the mayor committee and council is when a tender goes more than three years and a section 33 of the MFA, public participations, National Treasury is to be informed of those responses to a contract going beyond three years,” he added.
In the commission’s evidence, Molelwane Consultants bank statements from 2015 show a payment of close to R800 000 from Regiments Capital.
A day later, at least R500 000 of that money is transferred in a bank account in Makhubo’s name.
Makhubo again denied he had unduly benefited from a tender with the city.
“Without having the details big amounts would go to the call account for higher interest, in the same profile.
“Regiments owed Molelwane Consulting. The money that was duly invoiced and paid. I don’t know how it links to the council decision; it’s got no relationship at all,” Makhubo told the commission.
He added he was not involved in the day-to-day running of Molelwane Consulting but remained the sole signatory of the company.
(SOURCE: JACARANDANEWS)