Malema 'dishing out tenders to friends'

2011-08-05 11:05
Johannesburg - ANC Youth League president Julius Malema is dishing out tenders to his friends, through a R4.6bn road management deal, the Mail & Guardian reported on Friday.

The report indicated that the Ratanang Family Trust, founded by Malema, holds shares in the company On-Point Engineering, which 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 the unit for three years at a fee of R52m.

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


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.

A recent report quoting an unnamed source in the City Press alleged that the Ratanang Family Trust received a deposit in return for facilitating a tender. Malema has strongly denied this.

On-Point is reportedly a sister company of SGL, which Malema was director of in 2009 and 2010.

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 said she found no evidence that Malema manipulated tender processes, adding that much of the required paper trail could not be found.

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