It is alleged that the JPC paid R27 million to a company that had only been registered for two-months at the time of receiving the payment in September this year. We were reliably informed that part of this R27 million would be used to destabilise the coalition government of which I was the Executive Mayor, by funding the payment of bribes to Councillors in order to entice them to vote against our government.
In early September, I, as the Executive Mayor, was informed by the then Member of Mayoral Committee (MMC) for Economic Development, Cllr Nkululeko Mbundu, about information he had received from a whistle-blower.
In their detailed submission, the whistle-blower alleged that the JPC had made irregular payments amounting to or around R27-million to a company that was fronting as a conduit through which to channel money from the City to the African National Congress (ANC). It was further alleged that this money would be used to finance nefarious activities intended to destabilise the then Multi-Party Government.
The basis of this multimillion-rand transaction relates to a lease agreement that was contracted between the JPC and a company, to lease Proton House. The premises at Proton House were intended to be utilised as office space for the City’s Group Finance Department.