Malema cousin's tender ripoff

2011-06-05 10:41

Johannesburg -  ANC Youth League leader Julius Malema’s cousin won a R44m pharmaceutical contract in Limpopo without ­submitting a ­formal tender.

Tshepo Malema's Arandi ­Trading Enterprises is one of eight companies whose dealings with the province’s health and social ­development department is now the subject of an internal fraud and corruption probe.

The companies were awarded tenders worth R167m to supply syringes, surgical blades, disposable needles, labels for medicines and patient referral forms to Limpopo’s hospitals and clinics.

Despite Treasury regulations, which require competitive bids for all contracts above R500 000, the ­department issued the tenders through a written quotation ­system in February this year.

Departmental spokesperson Joe Maila confirmed that Phil Setsiba, the senior manager for pharmaceutical services, has been ­suspended for allegedly inflating the quantity of stocks needed and the costs involved.

Maila said: "We picked up there could be some issues related to procurement at the depot. So we have since instituted an internal ­investigation to determine what could have happened."

Setsiba declined to comment.

Vuna Healthcare Logistics, a company contracted to manage the department's pharmaceutical depot, its procurement, warehousing and pharmaceutical distribution systems, distanced itself from the controversial tenders.

Stanley Mashego, one of its ­directors, said: "Everything was done by the department.

"After deciding who gets what, they just tell us what it is they have awarded to which person, and that we should take orders."

Maila would not say why the ­department outsourced the ­depot's procurement systems, ­saying he would comment further after investigations.

City Press is in possession of an internal memorandum, written on February 21 by the department's manager for regulatory and quality assurance, Happy Mohale, to ­Deliwe Nyathikazi, the acting head of department, labelling the tenders as "corruption and maladministration of public funds".

Mohale’s memorandum also alleges that bid members were made to sign an "oath of secrecy form" to keep quiet.

Nyathikazi refused to sign off payment orders, saying she ­"cannot sign an order" worth R167m as it was "way above my level".

She also slammed the tender process, saying it was  "impossible for an item's usage to increase from 1 300 to 500 000".

Tshepo Malema this week said that everything was above board.

He said: "I delivered, but did not get anything. I have not yet reached the stage of enquiring why I have not been paid."

Another beneficiary of the tender is Nthabiseng Ntshangase, a business partner of known Julius Malema ally Ali Boshielo.

Ntshangase, who shares a ­Polokwane residential address with Boshielo, said she won the ­contract fairly.

Boshielo’s company, Bitline SA 694, built a house for athletics champion Caster Semenya on ­behalf of ­Julius Malema two years ago. Ntshangase and Boshielo are business partners in another ­company called Candopro (Pty) Ltd.

Boshielo did not return repeated calls and a text message.

- City Press

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  • Julsie3 - 2011-06-05 10:55

    This is why the ANC want to force through the secracy bill, so that they can hide all the "cadre fraud" deals. Wake up South Africa. Democracy is going down the plug

  • captainm - 2011-06-05 11:04

    Can I get some of this action?

      clark - 2011-06-05 17:39

      - Well here's what you need to do ; subject to being of the right racial group, you join the Anc , attend all their meetings ,agree with all the anti white songs and sentiments, dance around with an imaginary machine gun,get noticed and apply for a top post for which you are hopelessly unqualified to undertake. Upon your appointment , you will be allocated a corruption amount for the taking at the next tender opportunity. QED.

      BigD - 2011-06-05 18:19

      Ha ha ha. Another scam pulled is that they ask for 3 proposals. Then give a contract to friend, Then when contract is over they go on for years on a month to month. You would be suprised at the clever ways they give contracts to buddies. And if caught nothing happens because they all do it, the people in power.

      E - 2011-06-05 18:58

      No. U are white!!

  • Pieter - 2011-06-05 11:09

    Stealing from the people = high treason, DEATH BY FIRING SQUAD! Easy as that!

      Frungy - 2011-06-06 01:48

      I completely agree with you here. I find it completely inappropriate that if some clerk who embezzels R 10 000 gets 10 years in prison, but a politician who embezzels R 10 000 000 resulting in people's deaths, and then gets away with a much shorter suspended sentence. As far as I'm concerned the politician should get life in prison (maybe then they'd fix up the prison system)

      croix - 2011-06-06 17:01

      Frungy - even worse is when they walk off with a golden handshake or get deployed elsewhere. Sipiwe Nyanda springs to mind .........

      Electronic Cemetery - 2011-06-20 17:11

      @Pieter, I have actually wondered many times why it isn't classified as treason? You're spot on!!!!!

  • Neo - 2011-06-05 11:21

    Nothing has changed in the SA government for the last 300 years..... same old...

      najmaebra - 2011-06-06 09:52

      Actualy Neo....the amounts have changed ....we looking at bigger figures now,before the figures were not as huge therefore the previous governments managed 2 get "away" with dey just dont know how n when to stop !!!

      UmFaan - 2011-06-06 10:36

      no Neo, things did indeed change.. There might have been corruption in the previous government.. But ministers involved in corruption were sentenced..not redeployed. Go and read on former minister Pietie du Plessis that served sentence in prison. Not in a hospital, but in prison, without receiving presidential pardoning

      I_Say - 2011-06-06 12:45

      100% correct. The only differance is that the previous government controlled the media, so they could hide much more so we will never know how much was stolen!

      I_Say - 2011-06-06 12:48

      100% correct. Except, The OLD regime had full media control so we will neva know how much those pigs stole.

  • Ian_of_Queensland - 2011-06-05 11:28

    So why is this news. Isn't corruption the norm in South Africa?

  • Carl Muller - 2011-06-05 11:47

    Looks like a frontal company. should be investigated thoroughly!!

  • clark - 2011-06-05 11:51

    - Next . . . .

  • Peterf - 2011-06-05 11:54

    Corruption is their middle name! Its the main reason that the nations of Africa are in the mess that they are, and South Africa is on the inevitable downward slide to basket case status. The only hope is for the country's leadership to take the bull by the horns and actually lead in stamping out this scourge. However, there is no hope of that happening with a president who has been implicated in corruption himself. Cry the beloved country!

  • DrG - 2011-06-05 11:58

    And this, my dear friends, is why we see Lambos at the weddings...

  • Brewster - 2011-06-05 12:12

    Hell, it just doesn't stop!!

  • Juliaas - 2011-06-05 12:15

    Skelm corrupted BASTAADS. Then you wonder why the whites do not vote for you and the corrupt ANC whom you worship.

  • jameswilliamhorn - 2011-06-05 12:16

    thick as thieves

      Raymond - 2011-06-05 20:22

      We are living under a BAND OF THIEVES.Tell lies and steal-a culture in South Africa.If they could,they will steal the blue out of the sky.

  • Yoni - 2011-06-05 12:17

    Love me tender, love me true...

      GinSA1 - 2011-06-06 06:48

      LMAO - very good Yoni................. these corrupt thieves should be lined up and shot - even though that means there would be loads of empty offices across the country as there would be no government!!!!!!!!!!!

  • VEO - 2011-06-05 12:23

    What rotten scum in Limpopo Province! Why should I be surprised, since that's where Malema and his corrupt cousin hail from. Well done to Happy Mohale for uncovering the corruption, and Deliwe Nyathikasi for refusing to sign off R167million payment orders. We need more like them.Naturally the scoundrels involved are going to say everything is above board, because that is normal !

      Lyn - 2011-06-06 14:41

      Yes - well done to those who uncover these things and then do something about it. Glad someone is actually doing their job and refusing to play along with all the corruption.

  • Thandi - 2011-06-05 12:25

    Why are we not surprised - just another member of the lobotomised gibbon family. Viva ANCorruption.

  • Sunith - 2011-06-05 12:26

    Shall we just assume that all people related to Malema is corrupt, until proven otherwise? Yeah, seems like a pretty safe assumption...

  • Joe - 2011-06-05 12:29

    It is heartening to read about people who are willing to spill the beans. I will however not hold my breath on a fair outcome of this scam.

  • IQ - 2011-06-05 12:32

    Whist Phil Setsiba has been correctly suspended he is only ‘one spoke in the wheel’. Whilst our erstwhile government department carries out its internal fraud and corruption probe (which could take anything from a couple of months to years), Tshepo Malema’s Arandi Trading Enterprises and the other seven companies continue to carry out said tender and services. Furthermore they continue to “earn” the total R167m. Why are the eight companies not suspended with immediate effect? By the time the internal fraud and corruption probe is completed and they are all probably found to be guilty, the ‘horse would have already bolted’ with the R167m. And the next round of ‘tender process’ will commence, this time though with someone’s second cousin, once removed!

  • Yoni - 2011-06-05 12:35

    Love me tender... love me true...

  • Ian_of_Queensland - 2011-06-05 12:35

    So why is this news? Isn't corruption the norm in South Afica?

  • REVO - 2011-06-05 12:36

    They all stink!! What's new?

  • nic - 2011-06-05 12:36

    I have to laugh... Just in a previous article he was quoted saying: "ANCYL members needed to be aware of people who were funded by big businesses because they undermined the struggle"

      StormerChick - 2011-06-05 16:59

      wahahahahaaaa - he'll find some way to justify it.

  • George - 2011-06-05 12:38

    Well there you go... Welcome to Africa

  • Fred - 2011-06-05 12:40

    What is there left to say. The corruption continues and we, the taxpayers have to fund these greedy swine. Why is it that none of them go to jail. If it was the normal man in the street we would have been locked up long ago. Has no-one in this country got the b*lls to put these thugs where they belong .... behind bars ????

  • nic - 2011-06-05 12:47

    A person reads this article and and wonder what I am still doing in this country. It is never going to change. Only get worse

  • Seinfeld - 2011-06-05 12:50

    And so the looting continues!! The anc must remember one thing. The status quo is still steady as long as there is money to steal. BUT and this they can take to the bank (pardon the pun) the money jar WILL run dry and when that happens SA is in for some fun and games. A government without money is a very vulnerable thing. A a government with a very angry 40 million people is a very dangerous place. The info bill wont help you when your depleted defence force is over run by the very people they are there to "protect". The next 5 years is the time for redemption or self distruction anc..the ball is in your coaurt.

      umlaut - 2011-06-05 20:59

      When the money dries up they still have Wet ink--they will print virtual money like Bob and when the ink runs out they will run out of SA-----that is why they steal such a lot. They know what is coming.!!!

  • Tekwini Durban - 2011-06-05 12:53

    Perhaps the Malema clan should rather be singing "Try a Little 'Tenderness'" by Otis Redding - instead of that other 'devisive' song they usually sing!

  • justmeme - 2011-06-05 12:55

    I just can't believe this - Malema, or family of Malema involved in fraud/tender rigging, this just can't be. It must be the dark forces at work again. He is such a stand up citizen, who doesn't care about himself, but only about others.

  • Mike - 2011-06-05 12:56

    WHO is pulling strings here?????

  • pugwash - 2011-06-05 12:57

    Tip of another corrupt ice-berg! These people make me sick. How do they get away with it time after time after time? . . . 'members were made to sign an "oath of secrecy form" to keep quiet' . . . and they honestly think its all above board. Makes me mad!!!

  • StirMonger - 2011-06-05 12:59

    City press has already found out what's wrong. The Corporate Governance/ Internal Audit team was not doing their job if there even is such a job. So who is going to do the investigation? The tea lady? Send the dogs in and get the thieves behind bars quickly. It's our cash the buggers are stealing.

  • Shisstirrer QBE - 2011-06-05 13:00

    And so the blatant stealing continues unabated , burn in hell , common thieves.

  • cynico - 2011-06-05 13:09


  • pistolpete - 2011-06-05 13:13

    Lock them up and throw away the key. Of course Mr Malema had nothing to do with this-it is an attack by wealthy insiders wanting to dethrone him, a racist plot, etc

  • hawker - 2011-06-05 13:17

    These people have no shame, they dont need it, no matter what they do their people will continue to vote them into power.

  • clark - 2011-06-05 13:17

    - What possible justification can there be for taxpayers to continue parting with their money into this bottomless pit of Anc corruption ?

  • Sunith - 2011-06-05 13:23

    Shall we just assume that all people related to Malema is corrupt, until proven otherwise? Yeah, seems like a pretty safe assumption...

  • expatsa - 2011-06-05 13:26

    You're frikken kidding me, right.... only now have they "instituted an internal ­investigation to determine what could have happened." How about having strong internal controls and enforcement of policies upfront in order to prevent these crooks from getting a sniff... but alas, this is what the majority voted for and all shall bear the brunt and suffer and few shall enrich and corrupt themselves.

  • hawker - 2011-06-05 13:27

    These people have no shame, they dont need it, no matter what they do their people will continue to vote them into power.

  • China Expat - 2011-06-05 13:29

    This is what Mandela and Sisulu fought for a BETTER LIFE FOR ALL HAHA what a joke, Mr Shower head has surrounded himself with the biggest bunch of thieves being one himself. The ANC is an absolute disgrace and for the majority of the population to continue voting for them doesn't say much for their intelligence levels. There is not enough space here to list the criminals in the ANC. GOODBYE SA, another African country down the drain, not one decent country in Africa!!!!!!!

  • Thandiwe83 - 2011-06-05 13:33

    This is why I am not an ANC supporter any more.

      Oppressed - 2011-06-06 11:57

      I dont remember reading anything about the ANC in this article, did you?

      Jo - 2011-06-06 13:30

      okay, but who is in charge of this province? Who is under oath to fairly and justly govern this province?

      clark - 2011-06-06 15:58

      - @ Oppressed - You and your type will never get it - Who runs the province ? - What party is Malema (including the cousin) affiliated to ?

  • Larry Laffer - 2011-06-05 13:33

    Sad day when you read this and then ask yourself "why am I not surprised".....

      Dilika - 2011-06-06 15:42

      Why did you ask yourself a question in the first place. People who talk to themselves are on the verge of loosing it. I will recommend you contact your company's wellness office as a matter of urgency.

  • Kevin - 2011-06-05 13:35

    How bad is this. Its an awful thought to think that Malemma has family, but to know that they could be involved in tender fraud is worrying. But then I suppose that anc voters do not mind if the elected officials take money which could have offered there children a better life and steal it. Do you think anc voters do not love or care for their families?What are the chances that this corrupy will do his 25 years.?

  • educated view - 2011-06-05 13:38

    a tender a day keeps the poor doctor away

  • Dundermoose - 2011-06-05 13:44


  • Benny66 - 2011-06-05 13:45

    On May 5th Malema was reported to have said: "The state depends too much on the tendering system and this has led to a political crisis." Shoddy work was being provided by "corrupt companies some of which are working with political leadership". "If we building internal capacity then there is no need for the tendering system" He forgot to ad: If the tendering process is properly applied with checks and balances, this leaves very little scope (for us) to practise fraud skills! How else is a man expected to make a living huh?

      umlaut - 2011-06-05 22:37

      Yes and now with the buddy tendering system, honest businesses are going out of business because normally you would lose a few, win a few tenders, but with this system you can't even think of winning. They use your tender as a guide as to what an honest job would cost and they charge 3 times more. Or you won't even know there was a tender possibility. You only hear about it after it was completed and the rain washed it away again.

  • Joe - 2011-06-05 13:57

    The SA fairytale circa 1994 - 2012? ANC bigwig........'s (insert name of choice)brother/sister/uncle/dog etc was accused of a tender scam to the value of R....m. The acting head of the procurement department, ........ , claims that he/she knew nothing of this scam and only became aware of it when the cleaner, ......... , queried why he/she was not given a share in the loot. A committee has been formed and was jetted off to Seychelles, Europe etc to investigate this scam. The committee was not even given a name, because nobody ever heard from them again. With all the other similar tales that are published daily, the press and the public soon forgot about this fairy tale and everybody lived happily ever after, especially the brother/sister/uncle/dog etc and the head of the procurement department. The end

  • Nasdaq7 - 2011-06-05 14:26

    Malema's Rolexes and BMWs and directorships and now family tenderpreneurs. The rich life of the ANC connected.

  • Pulverturm - 2011-06-05 14:29


  • Creeky - 2011-06-05 14:31