Malema dishes out tenders to friends – report

2011-08-05 10:26

ANC Youth League president Julius Malema is dishing out tenders to his friends, through a R4.6-billion road management deal, the Mail & Guardian reported.

According to the report, the Ratanang Family Trust, founded by Malema, holds shares in the company On-Point Engineering.

On-Point Engineering, was apparently outsourced to run the Limpopo roads and transport department’s Programme Management Unit (PMU), set up in 2009.

The unit was created to take over the department’s functions in planning, contracting and to oversee road works.

On-Point was reportedly outsourced to run unit for three years at a fee of R52 million.

“This means that Malema has at least indirect influence over who is awarded tenders from a three-year budget allocation of reportedly R4.6-billion ...” the report reads.

Malema, On-Point and the department have denied this.

According to the report, companies linked to Malema, his business partner in On-Point, Lesiba Gwangwa, and his friend and political ally, Limpopo Premier Cassel Mathale, shared in some of the contracts administered by the unit.

On-Point is reportedly a sister company of SGL, which Malema was director of in 2009 and last year.

Malema resigned from SGL at the time of an investigation into the company by Public Protector Thuli Madonsela to see if he had influenced tenders awarded to it.

Madonsela has said that she found no evidence that Malema manipulated tender processes.

However, she said that much of the required paper trail could not be found.

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