Protector fingers Malema on tenders

2012-10-10 15:14
Julius Malema (Picture: AP)

Julius Malema (Picture: AP)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Pretoria - Tenders awarded to On-Point Engineers by the Limpopo transport department were unlawful, Public Protector Thuli Madonsela said on Wednesday.

"The awarding of [the] tender by the department to On-Point was unlawful, improper and constituted maladministration," she said in Pretoria.

She found On-Point and former ANC Youth League leader Julius Malema benefited improperly from the contract.

Malema's business partner Lesiba Gwangwa is chief executive of On-Point.

Madonsela presented her findings in a report on corrupt practices in Limpopo entitled: "On the Point of Tenders".

Madonsela found the department did not follow proper guidelines in awarding the tender.

"It is mind-boggling that the stark differences between the bid document and the tax clearance certificate did not disqualify On-Point or present a red flag regarding the possibility of tender fraud," she said.

She received three complaints in July 2011 and decided to investigate the allegations that the department of roads and transport awarded the On-Point tender corruptly.

Also under scrutiny were claims that Malema used his political position to influence the awarding of tenders by the department and the Limpopo government in general.

She also investigated whether Malema's Ratanang Family Trust and/or Malema benefited improperly from the tender awarded to On-Point.

The total amount paid by the department to On-Point in terms of the contract at the end of June 2012 was R43 868 900.

Improper

Madonsela said she found the awarding of the tender was unlawful after perusing documents relating to its procurement, interviewing officials, and consulting the National Treasury. Relevant laws and records were also analysed.

The bid presented by On-Point in respect of the project management unit (PMU) tender deliberately and fraudulently misrepresented the profile, composition, experience and therefore the functionality of the company.

It was claimed that On-Point was an established and experienced operation with management teams and professional staff that complied with the requirements of the request for proposal.

But at the time of the bid, the company had existed for only a month, and had no employees, or several of the purported key management and staff.

"The conduct of the head of the Limpopo roads and transport department, Ntau Letebele, in respect of the awarding of the bid to On-Point, was improper and constituted maladministration," Madonsela said.

The conduct of On-Point as PMU of the department to enter into agreements with Mpotseng Infrastructure, Baitseanape Consulting Engineers and HL Matlala and Associates respectively constituted corrupt practices as envisaged under section 12 of the Prevention and Combating of Corrupt Activities Act, 2004.

On-Point entered into "back-to-back" agreements in terms of which it received, or was supposed to receive, payments from contractors for designs which it had drawn for projects it was contracted to manage and supervise.

"The shareholders of On-Point, including the Ratanang Family Trust, benefited improperly from the tender that was awarded to On-Point."

Madonsela ordered Letebele to take steps to cancel the PMU tender.

She said the State Attorney should institute legal proceedings against On-Point and shareholders who benefited from the PMU tender to recover money to which the department was entitled.

- SAPA
Read more on:    on-point engineers  |  julius malema  |  lesiba gwangwa  |  thuli madonsela  |  polokwane  |  tenders
NEXT ON NEWS24X
SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
266 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/Motoring
 

Thirty and still single? There’s hope!

Are you thirty and still single, without even a hint of a prospect on the horizon? Then read this!

 
 

Men24.com

SA’s Playboy Playmate of the year in action!
12 lies everyone accepts as fact
Hottie of the day: Charlotte
Breakup text goes viral and it’s hilarious!

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Festive gifts!

Check out our awesome range of festive gifts to make everyone’s wishes come true. Shop now!

Seen something you like in our catalogue?

Find the perfect gift and save up to R5000 – As seen on the catalogue. Hurry and shop now!

Save up to R2200 on electronics! – As seen in the catalogue

Wishing for tech gadgets this festive? Save up to R2100 on hot tech products at kalahari.com. While stocks last. Shop now!

Up to 35% off books

Save up to 35% on the latest page-turners. While stocks last. Shop now!

Good Morning, Mr Mandela by Zelda la Grange

Good Morning, Mr Mandela tells the extraordinary story of how a young woman had her life, beliefs, prejudices and everything she once believed in utterly transformed by the greatest man of her time. Now R221. Pre-order now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

It may be hard to stay cool, calm and collected. Your emotions can get quite heated in the moment. You may benefit from finding a...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.