City to investigate previous administration’s contract with Bosasa

20 March 2019

Yesterday, I was made aware that under the previous administration, the City’s Johannesburg Metropolitan Police Department (JMPD) had entered into a contract with the disgraced African Global Holdings (AGH), known formerly as Bosasa.

As we have witnessed through the Judicial Commission of Inquiry into Allegations of State Capture, Bosasa was a major player in driving corruption throughout the state.

Given our grave concern regarding this matter, I have immediately instructed that this contract be investigated by the City’s Group Forensic and Investigation Services (GFIS).

This is not the first instance where the previous administration had entered into an agreement with an institution now linked to state capture.

Recently, amaBhungane uncovered evidence which conclusively showed how Cllr Geoff Makhubo – the former MMC for Finance within the City and current Leader of the ANC’s Johannesburg Region – and Cllr Parks Tau – the former Mayor of the City - orchestrated a windfall of at least R30-million for Makhubo by allowing him to unduly act as broker for Gupta linked Regiments Fund Managers, giving the fund managers unfettered access to lucrative deals within the City.

According to the report by amaBhungane, documents show 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].”

This meant that Makhubo, who was tasked with exercising political oversight on one of the City’s largest contracts, was also unlawfully benefiting from the very same contract. The City has already laid criminal charges in respect of this matter.

Since coming into office, the multi-party government has made it clear that corruption has no place in this administration and we will work tirelessly, and in collaboration with law enforcement agencies, to ensure that the residents of Johannesburg receive the quality services they deserve.

To date, GFIS has over 4 000 cases under investigation which said to equal R24 billion in worth.

Given the public’s concern over state capture, rightfully so,I will ensure the public is kept abreast of the outcome of our investigation into this matter.

Issued by Luyanda Mfeka, Director: Mayoral Communications, City of Johannesburg, 20 March 2019