The City of Johannesburg says state-owned arms manufacturer, Denel, has paid back a R290 million loan which it had received through questionable means.

The city says the unsecured loan was made through Gupta-linked Regiments Capital, without the City’s knowledge.

Quoting a recent report by the investigative journalism centre, Amabhungane, Mayor Herman Mashaba says former MMC for Finance Geoffrey Makhubo, working with former Mayor Parks Tau, paved the way for Regiments to transfer the R290 million to Denel.

Mashaba opened criminal cases against Tau and Makhubo on Monday.

“The City of Johannesburg can confirm that Denel made a repayment of R290 million owed to the City of Johannesburg after Regiments had transferred the money into Denel without the City’s knowledge. The money will now be reinvested back to the City’s sinking fund,” says Luyanda Mfeka, Mashaba’s spokesperson.