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Johannesburg - The Public Protector could not find any irregularities in contracts awarded to SGL Engineering Projects, with which ANC Youth League president Julius Malema was involved.
In a statement on Monday, Public Protector Thuli Madonsela said her office "could not determine" whether tenders awarded to SGL by three municipalities "complied with the relevant procurement legislation and other prescripts, due to poor procurement record keeping by the said municipalities".
One of the contracts was awarded to SGL by the Makhado Local Municipality, four were awarded to the company by the Greater Sekhukhune District Municipality and one by the Lepelle-Nkumpi Local Municipality.
City Press reported in February that SGL won an "unspecified tender" for R6.8m in Makhado and a R1.9m contract for an "unspecified tender" in the Lepelle-Nkumpi municipality.
The protector's office said investigations into awarding tenders to SGL by other municipalities found that the procurement processes "generally complied" with the constitution, the Municipal Finance Management Act, 2003 and the supply chain management regulations.
The probe involved ten municipalities and consisted of interviews with municipal managers, chief financial officers and other senior officials involved in supply chain management, and the studying of tender documentation and site inspections of projects relating to the tenders awarded to SGL.
It found "no verifiable information or evidence" that the tenders were awarded to the company through "improper influence", "comradeship", "nepotism", "political affiliations", or "any other impropriety".
The completed projects were also found to be "generally of an acceptable quality and standard".
It had earlier been reported that work done by the company was "shoddy" and in some cases was not completed.
Poor record keeping
According to the information received by Madonsela, Malema was involved with the company until November 2009.
He had earlier claimed that he resigned all directorships after his election as league president in 2008.
The probe was conducted after Madonsela's office received a number of complaints about alleged tender irregularities in various municipalities across Limpopo and the North West.
The complaints were made by the Congress of the People and the youth wing of Afrikaner-interest group, Afriform.
The tenders under scrutiny included a R2.1m sewerage upgrade; a R39.3m sewerage reticulation project; a R27.9m street paving and drainage contract; a R28m tender for several municipal infrastructure projects; and a R2bn roads tender.
Malema has denied receiving any lucrative tenders, including any through SGL Engineering Projects.
Madonsela submitted her report on the probe to the Speaker of the National Assembly on August 13.
She recommended that the municipalities involved improve their supply chain management regulations and their keeping of records.
A "lifestyle audit" of Malema in The Star newspaper earlier this year raised questions about whether he was living above his means.
Subsequent weekend reports indicated that Malema financed his lavish lifestyle through directorships, including that of SGL, which it was claimed had benefited from R140m worth of municipal tenders in Limpopo.
