Malema’s company scores – again

2010-03-07 07:27

ANC Youth League president Julius Malema’s company, SGL Engineering Projects, was handed at least four multimillion-rand contracts in just one month in his home town of Polokwane, Limpopo.

City Press can exclusively disclose how SGL was awarded tenders worth more than R6?million last year by the Polokwane municipality. Malema, who owns a R1-million home in the city, grew up in nearby Seshego.

A document from the municipality’s tender database, a copy of which is in possession of City Press, shows how SGL was awarded the contracts in October.

The document was compiled as a response to parliamentary questions last year by the Congress of the People about contracts awarded to companies by the province’s 31 ­municipalities. The answers from Polokwane were, however, inexplicably omitted from the official response presented to the legislature by the provincial local government and housing department.

A senior municipal official said this was because the answers highlighted the extent to which Malema’s company dominated tenders in the province.

While the document provided the value of other contracts awarded by the municipality, there were no amounts reflected in the column where SGL was listed as being a ­contractor.

According to the document, the contracts included vital development work including:

)?Consulting engineering on roads and sanitation projects;

)?Water and sewer reticulation;

)?Dam safety and pump stations;

)?Sewer purification and project management; and

)?Rural sanitation in the form of ventilated improved pit latrines.

The document was also silent on the exact location and period when the contracts started and their ­expected completion time.

The company scored 21 additional contracts from eight other municipalities to the value of R140?million ­between 2007 and 2009.

Polokwane municipality spokesperson Simon Mokoatedi claimed that SGL received only two tenders worth R3.2 million. When we put it to him that sources said SGL had ­also been awarded another contract worth more than R3 million, Mokoatedi replied: “There are processes to award the tender, but we cannot say much because the council still has to ratify the decision.”

According to Mokoatedi, two of the contracts were worth R3 million while the third, where an ­appointment letter still had to be ­given to the successful bidder, was worth an additional R3 million.

Several other municipalities which awarded contracts to SGL yesterday defended their decisions, insisting that the company was appointed through normal tender processes and submitted all relevant documentation.


)?From Mopani Municipality, SGL received R66.4 million in contracts. Municipal manager Timothy Maake said “no exception” (on documentation) was made.

)?Tzaneen municipal manager Mabakane Mangena said: “SGL went through normal processes that required documentation. There is no way we can award a company a tender without tax clearance.” SGL was awarded R28 million in tenders.

)?The Greater Letaba municipality also handed Malema tenders worth R28?million.

“Yes, they submitted a tax ­clearance certificate,” said Mayor Godfrey Modjadji.
“As you know, that is a basic ­requirement and you cannot ­process any contract without that information for tax reasons.”


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