Farm in On-Point probe seized

2012-12-07 16:02

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

A farm in Limpopo, which is part of an investigation into On-Point Engineers, has been seized after the North Gauteng High Court granted a freezing order.

“The order [was granted on Wednesday and] was served this morning,” National Prosecuting Authority spokesperson Makhosini Nkosi said in a statement.

It was served on Gwama Properties, which is registered as the owner of the Schuilkraal farm, and its sole director Lesiba Gwangwa.

The Asset Forfeiture Unit made the court application for the seizure of property based on an investigation by the Hawks and two independent reports into On-Point’s activities.

The reports were compiled by Public Protector Thuli Madonsela and PriceWaterhouseCoopers.

The court accepted the unit’s submission that there were reasonable grounds to believe that the property was acquired with the proceeds of unlawful activities perpetrated against the department of roads and transport in Limpopo.

Gwangwa is also a director of On-Point Engineers and faces charges related to tender fraud and corruption in the Polokwane Regional Court.

He previously appeared in court with axed ANC Youth League Julius Malema, who faces a charge of money-laundering and racketeering.

Several others, and four companies – On-Point, Gwama Properties, Segwalo Engineering and Oceanside Trading – were charged along with them. Gwangwa was released on R40 000 bail.

Court papers revealed that Malema allegedly benefited from corrupt activities amounting to R4 million and had “clear business ties” with Gwangwa.

The State charged that Gwangwa and three others misrepresented themselves to the Limpopo transport department, and a R52 million tender was awarded to On-Point.

Another R1 million “gratification” was paid for the securing of the tender.

Bid documents submitted by On-Point Engineers to the department contained several misrepresentations. Names given as executive and senior people at On-Point were for people not employed there.

On-Point entered into secret agreements with service providers and in return received sums of money for these, the papers said.

Malema allegedly benefited from the tender by using it to fund a farm worth R3.9 million and to make a payment of R382 655 for a Mercedez Viano.

“... Most of the payments ... were channelled through other entities ... to pay for the farm,” the charge sheet said.

It said R1 million was a part payment for a portion of the Schuilkraal farm by the Ratanang Trust.

Malema’s Ratanang Family Trust was an indirect shareholder in On-Point and Gwama Properties, said court papers.

In October, Madonsela found that tenders awarded to On-Point were unlawful, and that the department did not follow proper guidelines in awarding them.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. 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
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


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 network.


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.