Johannesburg - Limpopo-based cronies of ANCYL president
Julius Malema allegedly spent millions of rands of taxpayers' money on
properties, cars and parties, the Sunday Independent has reported.
It claimed that engineer Lesiba Gwangwa was at the centre.
Gwangwa was Malema's business partner and the sole director of On-Point and SGL
Engineering Projects. The two companies were previously or currently owned by
Malema and his Ratang Family Trust.
Both companies have scored more than R400m worth of known
Limpopo municipal tenders since 2007.
The companies are being investigated for tender fraud and
corruption by the SA Revenue Service, public protector Thuli Madonsela and elite investigating unit the Hawks.
The national government stepped in and placed five
departments in Limpopo under administration last month after tender fraud
brought the province to the brink of collapse.
Madonsela has ordered the provincial roads department to
suspend On-Point's participation in the tender awarding process.
She is apparently looking into how Gwangwa allegedly forced
contractors to sign secret back-to-back agreements which entitled his company
to a share of the proceeds of the tenders it awarded.
According to analysts quoted by the newspaper, President
Jacob Zuma was aware of what was happening in Limpopo, but was allowing the
investigation to take its course rather than recalling the province's political
Political analyst Somadoda Fikeni told the newspaper that
the ANC leadership would rather let the investigation expose links between the leadership
in Limpopo and the tender irregularities.
"In that manner it would be seen as a technical
administrative process that deals with governance and corruption issues without
being seen as politically manoeuvred."