R52m tender trips up Malema

2012-09-23 15:07

Johannesburg - Julius Malema made his millions from a fraudulent and possibly corrupt tender, says Public Protector Thuli Madonsela in a City Press exclusive.

City Press has obtained a copy of Madonsela’s provisional report into the R52m tender won by On-Point Engineers from the Limpopo roads and transport department.

Malema’s Ratanang Family Trust is one of two shareholders in On-Point.

Although Madonsela couldn’t find any evidence that Malema interfered in the tendering process, she found that his trust benefited “improperly” from the contract and that legal action should be taken to recover the money he received.

Her investigation also found that On-Point acted corruptly by signing back-to-back agreements with subcontractors.

“Due to the fact that the awarding of the contract to On-Point was based on deliberate misrepresentations and non-compliance with procurement prescripts, its shareholders, including the Ratanang Family Trust ... benefited improperly by means of the payment of ‘dividends’ and other payments made to it by On-Point,” the report reads.

Madonsela recommends that the tender be immediately cancelled; that the National Prosecuting Authority (NPA) and the Asset Forfeiture Unit urgently consider criminal action; and that the Master of the High Court investigate the flow of money into Malema’s trust.

Malema will appear in the Polokwane Regional Court on Wednesday to face criminal charges of fraud and money laundering relating to the On-Point tender.

City Press has learnt that his business partner and On-Point’s chief executive, Lesiba Gwangwa, will also appear in court, along with other Limpopo businessmen and government officials involved in the awarding of the tender.

Apart from Madonsela’s report and the criminal charges, Malema has a third battle to fight: a tax judgment of R16m obtained against him by the SA Revenue Service (Sars) last week.

Sars is targeting Malema’s property and assets in Limpopo and Gauteng, including his half-built mansion in Sandton, a farm and smallholding in Limpopo, and a Polokwane house.

Sars spokesperson Adrian Lackay confirmed the judgment.

As state institutions were putting the boot in, Malema was crying foul, claiming that the sudden actions against him were politically motivated.

On Monday – four days before his arrest warrant was issued – Malema’s lawyer, Nicqui Galaktiou, warned the NPA and the Hawks in a letter not to be influenced politically when considering Malema’s matter.

“It has come to Mr Malema’s knowledge that there is a political plan to have him arrested and incarcerated within days ...

"Mr Malema is deeply concerned as to this information and, if true, provides stark evidence that there is a political agenda to have Mr Malema arrested and brought before a court on charges which are unsustainable,” she wrote.

These charges, according to Galaktiou, will be motivated by an “ulterior motive to silence him as a political opponent to other politicians and to interfere with or limit his constitutional rights, including his right of freedom of speech”.

City Press understands that Malema’s belief in a political conspiracy was fuelled by a high-level meeting of ministers that took place in Cape Town last week.

He apparently thinks that the purpose of the meeting was to devise a strategy to have him arrested and that this constituted political interference of the highest order.

It is expected that Malema’s legal team will make this argument when he appears in court this week.

City Press was given different versions of the same meeting, indicating the country’s security establishment was split on the Malema matter and whether there was political pressure on the NPA to charge him.

Yesterday Justice Minister Jeff Radebe, who chairs the justice, crime prevention and security cluster, said no individual cases were discussed.

“The purpose of the meeting was to discuss the situation that was prevailing in the mines in Marikana and what measures needed to be put in place to stabilise the situation.

“These are the same measures announced at the media briefing (on Friday). Allegations that individual cases or individuals were discussed are unfounded.

“The cluster would like to dismiss these mischievous allegations.

“The cluster would like to reaffirm the independence of the NPA, the SAPS and Sars as protected by the Constitution ... and other laws of our country. These institutions are established to conduct their work independently from the executive,” Radebe said.

Yesterday Malema declined to comment, saying he will respond in court.

Cosatu’s Zwelinzima Vavi wrote on Twitter: “Malema is innocent until proven guilty – that is the principle we must respect.”

Madonsela’s sanctions

  • On-Point’s R52m project management unit tender with Limpopo roads and transport department be cancelled.
  • Legal proceedings be instituted against On-Point and shareholders (including Malema’s trust) to recover improper financial benefits.
  • On-Point and Lesiba Gwangwa be blacklisted by the Treasury.
  • Double payments to On-Point be recovered.
  • Disciplinary steps be instituted against members of the bid adjudication committees that awarded the tender to On-Point.
  • The Engineering Council of SA investigate Gwangwa’s conduct.
  • The Master of the High Court investigate the administration of the Malema and Gwangwa family trusts.
  • The NPA and Asset Forfeiture Unit urgently consider taking criminal action.
– City Press

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  • Jean-Pierre Wolf - 2012-09-23 15:33

    funny how only when the anc is threatened does it expose members bad deeds so to speak wonder how many others they are covering for .... democracy ... what a joke

      neville.watson.31 - 2012-09-23 15:55

      Good point. If Juju wasn't threatening Zuma's second term this would not be happening. Democracy fails because those in office start acting to ensure re-election instead of what is good for the country.

      steve.gibson.146612 - 2012-09-23 19:43

      Agreed that this is politically motivated but when you look back, not investigating him when he was in the ANC was also politically motivated.

      darren.raath.5 - 2012-09-24 07:01

      the ANC do what they want to ensure the system works for them. the stupid ignorant masses cannot see this and they will vote for these clowns again.

      kndobe - 2012-09-24 08:04

      @Darren Raath, the masses know about this but what can they do as they can't vote for the enemy.

      darren.raath.5 - 2012-09-24 08:40

      @kndobe. yes they would rather vote for a corrupt, fraudulent ,greedy ,ignorant party that has given them absolutely nothing.the government steels from its own people more than it steals from the whites and the masses chose not to change it. just maybe voting for a white party in todays times will deliver them much much more than in the pre-apartheid era. things are different now and a white party will deliver much much more to the poor black masses than the current ANC government. i repeat myself.:: they are stupid.

      Fidel - 2012-09-24 09:18

      @Jean Well said Jean, it is difficult to be excited by government actions where the beneficiary of this outcome will be a certain faction within the ANC. The Zuma faction accused Mbeki of employing the same tactics when Zuma was being charged with corruption, and all kind of promises were made that state institutions wouldn't be employed in fighting political battles. As for Malema, he made his bed and he needs to lie in it. We must however be vigilant at this abuse of state resources to fight political battles,and who knows oneday it might be opposition members that are targetted this way. The timing of these charges stink!

      freddie.jones.58367 - 2012-09-24 12:01

      @KNOBE The DA are NOT 'The Enemy'! They are currently 'The Loyal Opposition' in Parliament. Enemy and Opposition are different words and have different meanings. Take the trouble to look in a dictionary. They are loyal South Africans who want what is best for South Africa. They have a different view to achieving this than the ANC do.

      jacqui.daanevanrensburg - 2012-09-24 12:39

      Kndobe, it looks to me as if the masses have done nothing else but vote for the enemy.

      Oh.allemagtig - 2012-09-24 13:17

      @Kndobe: The masses as you call them have democratic choices. If a voter thinks rationally rather than blindly following party dogma, the current voting choices are:1. vote for a stronger opposition to enforce democratic accountability, 2. vote for the ruling party and perpetuate mismanagement, corruption, nepotism, cronyism, or 3. Theabstain/spoil paper to give politicians the finger. You are brain washed if you believe opposition parties are the 'enemy'. You insult the millions of voters who voted against the ANC, as they have right to do so. Like you, they are simply South Africans. darren.raath: You are perpetuating a canard when you refer to a 'White' opposition. When last seen, most of the DA marches and gatherings show blacks in the majority. The leadership may be White, but believe it, with more and more Blacks joining the DA *(thus becoming Kndobe's 'enemies') you will see the demographics change more and more.

  • godfrey.daniels2 - 2012-09-23 15:45

    Don't only concentrate on Julius Malema. Rip those other corrupt crooks from the woodwork, connected or not. You do the crime, you must do the time. No slaps on the wrist like before.

  • mmangaliso - 2012-09-23 15:52

    well juju should nt pay, are u tellin\r\nme that he owes R16mill for the\r\n11/12 tax season? Som1 should\r\nhave noticed this a long time ago\r\nlet the person who should have\r\nnoticed pay. He should let take them his\r\nproperty everythin belongs to the\r\ntrust. Trust

      hein.huyser - 2012-09-24 06:28

      Mmanga, you can't be serious now, are you? Reverse thinking in Africa's way here. Malema have not worked one single day in his life. Everything he owns was illegally gotten through his tenderpreneur buddies, and no, it does not matter who did the books, the fact remains that the money ended in a trust account which belongs to fatboy, and the money was gotten illegally. Two wrongs don't make a right. Stop supporting the very people that keeps you in the township-mentalty and gutter-education.

      alan.jerrold - 2012-09-24 13:26

      mmangaliso: YOU are a perfect example of precisely what is wrong with Africa. Why almost every African country is a mess, begging for Western aid. Because you support crooks. Because you obviously don't believe that income must be honestly worked for. I just hope you realise in time that the ANC are useless crooks who will NOT deliver, and who will rob this country blind - especially the poor. WAKE UP MAN BEFORE IT IS TOO LATE!!!!!

  • mark.schulz.796 - 2012-09-23 15:52

    Papa wag vir jou.

  • gerald.king.589 - 2012-09-23 15:55

    You must know which side your bread is buttered if you must have it buttered...

  • whites.mustunite - 2012-09-23 16:26

    675 billion rand has gone missing since 1994. The whole lot of these ANC so-called leaders belong in jail.

      hein.huyser - 2012-09-24 19:52

      @Clive, the sad thing here is that you believe it.

      william.bhani - 2012-09-24 20:45

      we know today that there is corruption because of the ANC leaders. some of white people are very rich because of corruption

  • J.Stephen.Whiteley - 2012-09-23 16:28

    There are vacancies in Graskop selling nuts

  • Vince.York - 2012-09-23 16:30

    Having approached this ANC YL in 2005/6 to take forward excellent basic financial skills development along with specialised PWC tutors, at exactly the same time as we can all see now in hindsight, as this unscrupulous RACIST character slithered into the seats of leadership and Pule Mabe with those vanishing Kebble Rmillions and all the rest that have subsequently been turfed out - we can only hope the youth DO finally start to get a chance to get to grips with proper and real gainful financial skills and integrity and begin to develop REAL BUSINESS TRADE instead of merely darting around between proverbial sheets for a next gov grant or trender-contract. Good luck to anyone that tries - and with the racist mindset as imbued so strongly against fellow South African's of differing groups individuals are strongly warned against wasting their time and energy - but rather leave it up to huge corporates & colleges that can buy their way and influence in the new SA way to do business. DEAT should next be thoroughly investigated as it grapples with that giqwa phantom called 'poverty', and a close second that gross department DCS and it's outright failure of a payment department. The Taxi association is still a lost cause and will remain violent anti social warlords never contributing to the trade and tax coffers aiding their fellow citizens

      Wally Walters - 2012-09-23 16:59

      why is it only ANC members get caught out for corruption is it because they think apartheid years owes them big time

      Erna - 2012-09-23 17:50

      The reason only anc officials get caught out is: 1. They think, and often are, above the law, and 2. They are so greedy that they don't know when to stop!

  • patrick.saunders123 - 2012-09-23 17:00

    malema is merely a reflection of his political masters. All corrupt. All hypocritical. All should be prosecuted.

  • tolo.maano - 2012-09-23 17:09

    But if juju get arrested then mrs madonsela must investigate all the business man within anc leadership 99% of them have business and are farmers...

  • neo.motsepe - 2012-09-23 17:12

    \An UNjust law is NO law at all\

  • jamiepamuk.brown - 2012-09-23 17:27

    Put him away with Zuma in a 2x4 Prison Cell on Robben-Eiland.Make them the star attractions for our failing National Heritage cite.

  • Tony D Canham - 2012-09-23 17:59

    Malema is innocent just as all other ANC high ranking officials 'ARE'!

      B.b. - 2012-09-24 13:39

      Lol lol lol ha ha ha Tony u r such a great joke cracker joe....lmaooo

  • steven.m.armour - 2012-09-23 18:04

    Setting him up for the next President.

  • malcolm.stevens.129 - 2012-09-23 19:20

    This will drag on for years. Then he'll get off with some behind-the-scenes political settlement.

  • Mario Bisogno - 2012-09-23 19:27

    And he acts like he cares for the poor ,and they believe him.52 million and he still wants more ,blady crook

  • josie.russell.10 - 2012-09-23 20:55

    Not bad for someone who failed woodworking - not as stupid as we all thought! Oh wait a minute - hes been caught. Wonder if government will get the money back and WHO will be the next one to receive it ha ha ha

  • bigman.dontcry - 2012-09-23 21:29

    This might be interesting as we are going to hear more and see more politicians hooked in. I'll like to be updated. I'm once a victim such as a limpopo dweler.

  • jaco.slabbert - 2012-09-23 23:17

    Interesting... this all happens after he's made headlines again... and not as part of the ANC... whilst everyone's been saying this for years...

  • darra.pillay - 2012-09-24 02:17

    Malema's 'arrest' is neither surprising nor unexpected. What disgusts is that it took so long. It could have been done ages ago and was held back by somebody that owes society an explanation. What is of even greater concern is the blind, ill-informed support that this man garners. He is still dangerous. An insult? So be it. Acceptance of ordinariness and dishonesty and theft and criminality on the part of the 'electorate' is deserving of .... insult? Tiresome blind allegiance is the most dangerous element in our political landscape, even if we still have the supposed freedom of speech and press.

  • hein.huyser - 2012-09-24 06:16

    "A" TENDER FRAUD. why singular? Surely if they thaught they can get away with one tender, there must be more tenders awarded whereby they illegally bennefitted

  • john.mccafferty.564 - 2012-09-24 06:18

    His big mouth is the only thing politically motivated, he has been given the limelight because people like watching fools !!!

  • mart.botha - 2012-09-24 06:54

    Malema will not go to jail....he will 'sellout' all his connections to protect what he sees as his future. If there ever was a time that one of his 'matrs' will 'take him out;, this is it.

  • patsy.smith.125 - 2012-09-24 09:29

    So what happens now? He gets tried, maybe sentenced, hopefully jailed, and then he develops diabetes, high blood pressure, a heart disease or whatever, gets out of jail in a few days and goes back to his trouble-making?

  • clivegoss - 2012-09-24 11:00

    Cheers China ! ! Welcome to the normal everyday average survival existance like the majority of South Africans experience.

  • mlungisi.kunene - 2012-09-24 11:28

    I have been watching with great dismay how we tend to ignore events leading to a "major crisis"and we omit to raise an alarm! I will remind a reader of the Marikanna tragedy, it was never a once-off event. Those miners have been camping on a mountain top for over a week and no one cared.It was not before long there were shot and killed and everyone starting commenting and running to the scene. It is such issues that need to be look at and given careful judgement otherwise SA will regret it soon.

  • philip.buys.1 - 2012-09-24 12:23

    Bye bye baby black merc, hello cheepy shoes. Bye bye piggy piggy, hello slimmer malematjie.

  • mathivha.obert - 2012-09-24 12:26

    "Innocent until proven guilty" remain an entrenched doctrine in our criminal justice system. All what need to happen is that Malema must indeed explain himself albeit clear political pressure to silence him due to his irritating posture at times. While he prepare to explain himself in a court of law unlike certain people, he must never be silenced. I smell rat both sides here

  • jacqui.daanevanrensburg - 2012-09-24 12:37

    If he had kept his mouth shut about Zuma, he wouldn't be in hot water today.

  • Johnson - 2012-09-24 12:43

    the greatest lesson government should take from this - procurement in the hands of politicians will eventually lead to corruption - we should have a national tender board for all levels of procurement. How can you qualify appointing a service provider who is not suitably qualified and does not have the appropriate documentation i.e. tax clearance certificate. It goes to show that compliance is for ordinary citizens whilst ANC elite is excluded from it. You can not be a judge and prosecutor in a court case neither the client and procurement officer in politics. Leave procurement to people who are trained in procurement.

  • Lionel - 2012-09-24 12:43

    I love South African Politics!!!!

  • oamis.lacadariedlac - 2012-09-24 13:21

    This merely proves the publics suspicion that Limpopo has been bankrupted by Malema and his cohorts. The only reason he has been exposed is because he was stupid enough to challenge Zuma. The unfortunate reality is that the publics funds are being diverted away from rendering services to the communities, into the pockets of fellow tenderpreneurs, who render substandard services....Moral of the story is Malema should have shut his mouth and grown fat and rich......

  • simon.whittaker.923 - 2012-09-24 13:30

    Of course it's is political that he was protected as long as he was. Now that political protection is no longer there he is getting nailed!!! Big difference!!

  • B.b. - 2012-09-24 14:09

    The Hot Short laywer will present this in court \All this is polically motivated\ nothing more...wait and see. Ha ha ha. Obviously the country is run by politicians, so how come actions against Malema won't be politically motivated? The only thing to take into consideration is whether the cases will be fair or not. Don't worry about politics. U r also a politician Malema. But I don't think u r up against politicians,,,let us wait and see lol lol lol lmaooo,,,,it's either u behave or u jump!

  • Motho - 2012-09-24 15:45

    So he is the same as JZ?

  • leendert.stolk.3 - 2012-09-24 18:52

    Oh no, a (black) South African benefiting from an (illegal) tender. What are the odds?

  • william.bhani - 2012-09-24 19:45

    Anc does not need corrupt people like malema

      aarchaic - 2012-09-25 08:26

      SA dont need Corruption Period! We need to fight it on all levels.

  • Bob.Cee123 - 2012-09-24 20:06

    I sense an acute case of either Shaikalitis, Selebiosis or even HosniMubarakitis on JuJu's horizon.

  • ntethelelo.sangweni.7 - 2012-09-25 01:09

    Let us stop defending corrupt people,whether you like him or not,52m is too much,he must be jailed,it clearly shows that he don't care about the pleople of his own province,what about south africa as a whole,people are poor out there because of malema and his friends

  • bobbie.jacobs.92 - 2012-09-25 07:41

    Thuli Madonsela is doing an amazing job as Public Protector! her fight against corruption is restoring my faith in the public sector:) Thuli for president?

  • darryl.watton.3 - 2012-09-25 09:07

    This case and others will take over 10 years to finish he will make sure of it look at murder cases of dewani and JUB JUB mini murder still going on.... only the lawyers will benefit with fraudulent money.... sad

  • Zolile - 2012-09-25 09:33

    Malema is the creator of his misfortunes, no one but him can be blamed for all this, but the timing raises some question marks, this is nothing but the drama shows before Managaung, there will be more wounded soldiers as we get closer to Mangaung, watch this space. Hear me right, i am not even close to say Malema is innocent, he must face the music and the law need to take its course.

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