According to the Investigative Journalism Centre – Amabhungane, Makhubo scored an estimated R30 million from the City of Johannesburg by acting as an influence broker.
In 2006 financial services firm Regiments received a contract to manage the City’s sinking fund worth billions of rand set aside to meet the city’s future debt repayment needs.
Amabhungane reports that Regiments agreed to pay 10% of its fees to Makhubo’s company in exchange for the maintenance of strategic relationships with the city.
Mashaba says Tau in his role as Finance MMC and later as a Mayor failed to, not only disclose this information, but allegedly assisted Makhubo in facilitating deals for Regiments.
Mashaba says they are weighing options on how to recover the money.
“With our legal team we are exploring obviously criminal and civil claims against the individuals involved and I think also requesting that the two Councillors to really understand that they don’t actually deserve to be really public representatives after such an expose. That is so clear.”