The ANC in Johannesburg wants the party's provincial integrity commission to again investigate the city's mayor, Geoff Makhubo.
This comes after claims that he may have used his position to solicit millions in donations for the ANC from companies doing business with the city while he was a member of the mayoral committee (MMC) for finance. He is also accused of taking R7m himself.
The allegations were made at the Zondo commission of inquiry into state capture this week by Steven Powell, MD of ENSafrica Forensics. Powell said the money came from Regiments Capital and IT firm EOH, which both had contracts with the city.
Three months ago, the ANC provincial integrity commission cleared Makhubo after the Daily Maverick reported that a company linked to the mayor, Molelwane Consulting, got R30m from Regiments. The integrity commission said at the time there was no evidence of conflict of interest.
ANC Johannesburg regional secretary Dada Morero said the new evidence at the Zondo commission required the party's provincial executive to rule on Makhubo.
"The province is the one that would have the power to deal with it, as to what needs to happen from now," said Morero.
"Based on what happened at the Zondo commission yesterday [Friday], they [the provincial integrity commission] will now have to look at it."
The opposition in the council is pushing for a vote of no confidence in Makhubo.
At the time of his alleged links to Regiments and EOH, Makhubo was also ANC regional treasurer.
Regiments and EOH obtained contracts with the city while both firms had contracts with Molelwane Consulting, a company in which Makhubo and his mother are partners.
From 2006 on, Regiments paid R35m to Molelwane Consulting. Molelwane then paid R7m to Makhubo's personal bank account.
EOH had ICT infrastructure development contracts worth hundreds of millions of rands with the city and Makhubo sourced donations from the firm for the ANC and his own company.
A sales director at EOH, Patrick Makhubedu, made the payments through intermediaries, Mfundi Mobile Networks, Molelwane Consulting and another company owned by Makhubedu, Prime Molecular.
After EOH had transferred the money, it would be disguised as "cost of sale" and passed to the ANC.
These transactions mostly happened between 2014 and 2016 when Makhubo was Joburg's finance MMC.
On August 22 2014, Mfundi Mobile Networks paid R70,000 to the ANC greater Gauteng region before paying R80,000 to Makhubo's company, which had a bank balance of R600 before the payment.
Five days later, August 27, Makhubedu sent to Makhubo an EOH proposal for the upgrading of network and security infrastructure at the Joburg municipality.
But the "unsolicited proposal" by EOH to the city was dated April 16 2014 and quoted R106m for the job. On August 29, Makhubedu sent another e-mail to Makhubo, with an invoice for the R106m upgrade.
On September 1, Makhubedu instructed Reno Barry of Mfundi Mobile to pay R100,000 to Makhubo's company and "make an immediate clearance".
Before the R100,000 transfer, Molelwane's bank balance was R595.
"Before the R100,000 payment, Molelwane's account was almost depleted," said Powell.
On August 6 2014, Makhubo sent an e-mail to Makhubedu requesting "urgent assistance" to pay R582,000 for the ANC Youth League "relaunch" accommodation. The request carried specific instruction to pay "directly to the venue [Randburg Towers, a hotel in Johannesburg]".
The money was paid the next day by EOH. On August 8, Makhubo again sent a donation request to EOH. It broke down costs for the months of August 2014 to January 2015, adding up to R6.2m.
Makhubo said the money was needed for administrative costs, youth league and MK veterans regional conferences as well as an ANC Women's League rally.
In 2016, the ANC received a R16m donation from EOH for local government election campaigns and several payments to Makhubo's company. This was after EOH had won a contract of R404m from the city.
Makhubo's modus operandi was the same with Regiments, which won a multimillion-rand contract from the city in 2015, thanks to Makhubo's help.
In return, Regiments made a total payment of R35m to Makhubo's company Molelwane, R7m of which was eventually paid into Makhubo's personal account.
Makhubo said there had been nothing wrong with him benefiting from Regiments because he had a "consulting" contract with the firm through his company before getting into government.
"I declared to the city that I own Molelwane Consulting and I did not do anything to benefit a contract from the city for Regiments," said Makhubo.
Makhubo will be back at the Zondo commission at a date yet to be determined.
Makhubo was not the only politician to benefit from EOH largesse.
The deputy minister of state security, Zizi Kodwa, was also a beneficiary while he was the ANC's national spokesperson.
Kodwa was paid a total of R375,000 through various payments made by Jehan Mackay, an executive director at EOH.
Kodwa has denied that there was anything untoward about the money he received.
He said: "I did not get money from EOH, it was from a private personal account [of Mackay]. In the statement of [Steven] Powell at the commission, there is no merit of impropriety or corruption and involvement in a tender [on my part] except to mention payments."
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