JOHANNESBURG - The City of Joburg (COJ) on Thursday announced it has approved a report authorising settlement negotiations with Regiments Capital Fund Managers (Regiments) in order to terminate its relationship with that institution, which has allegedly been linked to state capture.
Forensic reports implicated Regiments in possible wrong doing. The fund managers were allegedly paid billions of rand by State-owned companies that include Transnet and Eskom in questionable circumstances for dubious contracts between 2015 and 2017.
Among the reasons why the COJ sought to end its relationship with Regiments, was the negative publicity around the fund managers. In Feubruary reports allged there were links between Regiments and Gupta linked Trillian Advisory Services. The Guptas are being investigated by SA authorities for questionable business practises.
The negatice publicity had impacted on COJ's reputation and integrity.
COJ also said that Regiments failed to honour the full redemption payments that were due in June, and also failed to timeously advise Denel would not be in a financial position to meet its obligations in respect of the unsecured loan amounting to R290 million that matured in June.