Those who colluded with Makhubo in improper awarding of contracts to EOH should face music — Zondo

Despite former mayor of Johannesburg Geoff Makhubo being deceased, those who possibly conspired with him in the improper awarding of City of Joburg contracts to EOH should face the full might of the law.

This is recommended in part four of the report on the investigation into the state capture, led by chief justice Raymond Zondo, which was released on Friday.

The report details how between 2008 and 2018, when Makhubo was MMC for finance for Johannesburg and the ANC's regional treasurer, he allegedly influenced tenders in favour of suppliers including IT company EOH in exchange for millions in kickbacks to the party and his company, Molelwane.

The report shows that EOH made several donations to the ANC.

Among the donations was one of R2m in December 2013 which was allegedly “for development and education services”. Another was a R3m donation on April 16 2014, the same day an EOH entity made an unsolicited proposal to the city for a multimillion-rand contract.

“Mr Makhubo is now deceased, however the EOH related parties to the prima facie corrupt arrangements between the city and TSS managed services are not,” read the report. 

TSS was a supplier development partner of EOH.

“The commission accordingly recommends that the law enforcement agencies investigate the city’s 2014 award to TSS managed services of a contract for the upgrading of the City of Johannesburg network and security infrastructure with a view to the prosecution of Mr [Patrick] Makhubedu, Mr [Reno] Barrie, Mr Jehan Mackay, Mr Ebrahim Laher and any other suspects identified in the investigation on charges under the Prevention and Combatting of Corrupt Activities if the investigation reveals such prosecution is warranted,” reads the report.

According to the report, the evidence received by the commission suggests that Makhubedu, Barrie, Makhubo, Mackay, Lehar and Mutileni conspired to procure an improper award to EOH Mthombo by the city worth R404m. 

The improper process involved repeated payments to Makhubo’s entity, Molelwane, from EOH entities or indirectly through one of the EOH-linked companies — Mfundi Mobile Networks.

Mfundi paid out the amounts which it accounted for as from “Sales COJ SAP Support Special”.

“It also involved regular donations to the ANC from the same source, both in the form of the direct donation of computer equipment to the ANC by EOH Mthombo and in the form of election expenses of the ANC by Mfundi out of the R16m paid to Mfundi by EOH Mthombo and accounted for by Mfundi as income from Sales COJ SAP Support Special,” the report reads.

The commission also recommended that law enforcement agencies investigate the city’s 2016 award to EOH with a view to the prosecution of those implicated.

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