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State Capture: Makhubo denies IT firm made donations for tenders when he was Joburg treasurer


  • City of Johannesburg Mayor Geoff Makhubo gave testimony related to cash flow during his time as the treasurer of the Greater Johannesburg Region of the ANC and finance MMC in the COJ.
  • Makhubo’s friend and former business partner Patrick Makhubedu made several transactions from his personal business to Makhubo’s business which had cash-flow issues at the time.
  • Makhubedu was also a director at IT service management company EOH which funded a Johannesburg ANC youth league conference.

City of Johannesburg Mayor Geoff Makhubo has denied that his friend and former business partner Patrick Makhubedu made donations to the ANC in Johannesburg and helped with cash-flow issues in his personal business in a bid to influence the rewarding of an IT tender at COJ. 

Makhubo appeared at the State Capture Inquiry on Monday to testify on cash flow-related evidence during his tenure as the treasurer of the Greater Johannesburg Region of the ANC. Makhubo was also MMC for finance in the COJ at the time.

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Evidence leader advocate Matthew Chaskalson SC read out several transactions where Makhubedu, through his personal company, transferred money to Molelwane Consulting – owned by Makhubo at the time – to help with cash-flow issues in the company.

In one instance, Makhubedu had transferred R200 000 into the business account that had R63.19 in it.

IT service management company EOH, at which Makhubedu is a director, also made donations to the ANC in Johannesburg to fund an ANC Youth League’s conference. Makhubo and Makhubedu facilitated the donations made by the company.  

Proposal

Following the donations, Makhubedu sent Makhubo an email with a networking proposal for a COJ tender. Makhubo denied having ever seen the email, although he confirmed that it was sent to his email address and said he did not understand why Makhubedu would send it to him because he was not in IT. 

Chaskalson said the timing of the donations were suspicious. 

“What I want to put to you is that Mr Makhubedu had made a series of donations to the ANC in the previous couple of weeks, and he had now saved your company Molelwane from its cash-flow difficulties, and it was in that context that he thought he might ask yours in relation to a pending EOH networking proposal,” said Chaskalson.

Makhubo said: 

Patrick would never do that. We were business partners and helped each other for a very long time. He would not solicit a tender from me like this or any other way. We have known each other for long.

A few days after the proposal email, Makhubedu also emailed Makhubo an invoice of over R1.6 million from TSS, a subsidiary of EOH, which is the same amount that was in the proposal. Makhubo said that he never asked Makhubedu why the emails had been sent him after learning about them through the commission, nor did he respond to them. 

“I am going to submit that the most plausible reason why there wouldn’t have been any response to these emails in 2014, and there wouldn’t have been any attempt to engage Mr Makhubedu about these emails in 2014 and now in 2020/21 is that you knew exactly what Mr Makuhubedu was asking of you and you were willing to provide what he was asking of you,” said Chaskalson. 

Makhubo denied this. 

Chaskalson questioned Makhubo on whether he thought it was appropriate for the ANC, the ruling party in the City, to ask for donations from a company that was doing business with the City and had pending bids with the City. 

Makhubo said:

I suppose that is an issue to be canvased, and I thought it was canvased with our national office when the president was here and the treasurer general. We ask for donations from everyone, from a spaza shop to anyone doing business with the City and anyone who is not doing business with the City. We go to the private sector to ask for business. We can’t self-sustain, so I think that whoever is willing to fund the ANC we sent proposals, and it is transparent.

Makhubo is continuing with his evidence, and the commission is also expected to hear Eskom-related evidence in the evening session. 


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