Herman Mashaba charges former mayor Parks Tau over R30m 'windfall'

Johannesburg Mayor Herman Mashaba
Johannesburg Mayor Herman Mashaba
Image: File

Johannesburg mayor Herman Mashaba on Monday laid criminal charges against former mayor Parks Tau.

He also laid charges against former MMC of finance and current leader of the ANC’s Johannesburg region‚ Geoff Makhubo. The charges were opened at Johannesburg Central police station.

This followed a report by amaBhungane which showed how Makhubo and Tau had allegedly "masterminded" a R30m windfall benefiting Makhubo by allowing him to unduly act as broker for Regiments Fund Managers.

The charges against Makhubo and Tau include fraud‚ corruption‚ money laundering and racketeering.

An investigation by amaBhungane revealed how Makhubo's company‚ Molelwane Consulting‚ allegedly agreed to be paid 10% of R300m in fees from Regiments Capital. This amounted to R30m.

"With the blessing and alleged aid of Tau‚ who has admitted on record that he knew of the relationship between Makhubo and Regiments‚ Makhubo‚ who was tasked with exercising political oversight on one of the city’s largest contracts‚ was allowed to feast off the same set of contracts he had oversight over‚" Mashaba said.

The investigation also revealed that‚ in 2006‚ Regiments Fund Managers received a contract to manage the city's "sinking fund"‚ which was made up of billions of rands for the city's future debt repayments.

Mashaba claimed that Tau was "more than a bystander" in the allegations.

Mashaba said that the city was at an advanced stage of conducting its own forensic investigation into this matter.

He said once investigations were completed‚ he had instructed Gauteng Hawks head Gen Shadrack Sibiya to set up a meeting with top leaders within the Hawks.

This was to ensure that "every effort is made to see to it that blatant criminality is met with the full might of the law"‚ Mashaba said.

He added that Tau and Makhubo should "resign from public office" due to the allegations.

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