City funds exposed to State Capture at hands of Gupta Associates
8 June 2018
Yesterday, I was advised of how Gupta linked associates, through Regiments Capital, have placed City funds at risk through unsecured lending to Denel, a state owned company, to the tune of R290 million.
As part of the City’s investment structure, the City utilises a sinking fund to pay back loans and investments made to the City, amounting to over R18 billion.
In 2012, the City of Johannesburg, under the leadership of Parks Tau, was alleged to have rigged a large tender in favour of Regiments, a Gupta-connected empowerment firm, to manage this sinking fund.
Investigative journalists at the time, alleged that the firm was also said to be enriching the wife of former Mayor, Parks Tau, whom is alleged to have become a multi-millionaire through links to Regiments.