Regiments to get the chop

The City of Joburg (COJ) yesterday announced it has approved a report authorising settlement negotiations in order to terminate its relationship with Regiments Capital Fund Managers (Regiments), which has allegedly been linked to state capture.

Forensic reports implicated Regiments in possible wrongdoing. It was allegedly paid billions of rands by state-owned companies that included Transnet and Eskom in questionable circumstances for dubious contracts between 2015 and 2017.

In February, reports alleged there were links between Regiments and Gupta family-linked Trillian Advisory Services. The Guptas are being investigated by SA authorities for questionable business practises. The negative publicity impacted on COJ’s reputation and integrity.

COJ said Regiments had failed to honour the full redemption payments due in June and to timeously advise them Denel would not be in a financial position to meet its obligations in respect of an unsecured R290 million loan that matured in June.

Joburg mayor Herman Mashaba said in a statement: “As part of the city’s investment structure, the city utilises a sinking fund to pay back inherited debts and investments made to the city, amounting to over R18 billion. Regiment’s handling of our residents’ hard-earned money is thus of serious concern to the city.”

Mashaba said the city had appointed a independent firm of attorneys to conduct a comprehensive forensic investigation into the sinking fund, from 2005 to date, which would include the circumstances and processes surrounding the appointment of Regiments.

“Already, significant progress has been made,” Mashaba said.

“It is expected that this will once again expose senior members of the former administration, whose actions not only robbed the residents of this city, but ultimately aided the nefarious state capture project which has paralysed government at a national level.” – ANA