Criminal charges against EOH and Joburg mayor Geoff Makhubo for corruption

The Democratic Alliance (DA) Johannesburg caucus says it will lay criminal charges against Joburg mayor Geoff Makhubo and IT company EOH for alleged corruption.

This comes after evidence presented at the Zondo Commission revealed that EOH paid millions to ANC politicians in donations and made irregular payments in exchange for lucrative tenders.

Testifying at the commission last year, EOH CEO Stephen Van Coller said their investigation into corruption uncovered both undisguised and disguised donations to the ANC.

He further revealed that irregular payments at EOH stand at approximately R865 million.

EOH has uncovered around R700 million of payments where there was no work done and which were not related to any contracts.

Steven Powell, managing director of ENSafrica’s forensics department, told the Zondo Commission that Johannesburg Mayor Geoff Makhubo requested over R6 million in payments to ANC accounts from EOH’s former business development executive, Patrick Makhubedu.

According to Powell, numerous payments to ANC bank accounts helped to fund ANC accommodation costs, employee stipends, transportation, and merchandise at ANC events.

Leah Knott
Leah Knott, DA Johannesburg caucus leader

DA Johannesburg caucus leader, Leah Knott said she will be laying criminal charges against Makhubo and EOH for the allegedly corrupt SAP contract.

She said the corruption cost the City of Joburg hundreds of millions and she will demand the return of the ill-gotten gains from EOH.

Knott is further calling on the ANC to return the donations and other payments it received from EOH.

She said Johannesburg residents deserve a clean, well-run city that is committed to service delivery.

“We cannot let corruption and state capture go unpunished,” Knott said.

Fatima Newman, EOH’s group risk officer
Fatima Newman, EOH’s group risk officer

Commenting on this news, EOH said it noted the intention expressed by the DA to take legal action against implicated previous EOH management and related parties.

“EOH welcomes this move and that of any other interested parties who are willing to support the efforts by the new EOH board to right the wrongs of the past,” said Fatima Newman, chief risk officer at EOH.

“This is in line with the well documented actions of the current board to transparently resolve the legacy corruption issues.”

The actions by EOH to fight corruption include submissions to the Financial Intelligence Centre (FIC), the Special Investigating Unit (SIU), National Treasury, the Hawks and the Judicial Commission of Inquiry into Allegations of State Capture (the Commission).

In addition, EOH has initiated its own legal proceedings against implicated parties.

“The DA’s announcement to pursue legal action in this regard further legitimises the comprehensive steps that EOH’s new board has taken over the past two years to create the EOH of today – an ethical organisation built on best practice governance, risk and compliance principles,” Newman said.

EOH said it is proud to have been able to support the work of the Commission and the judicial system through the evidence presented by Van Coller and Powell.

“EOH has come full circle in its commitment to rebuild the organisation and fully supports the Commission, the SIU and other relevant law enforcement agencies efforts to remediate past injustices.”

Now read: EOH CEO Stephen van Coller has done a phenomenal job – it is now time to believe

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Criminal charges against EOH and Joburg mayor Geoff Makhubo for corruption