DA to report Malema to Parliament for not declaring his interest in investment firm

EFF leader Julius Malema. (Phill Magakoe, Gallo Images, file)
EFF leader Julius Malema. (Phill Magakoe, Gallo Images, file)

The DA intends reporting EFF leader Julius Malema to Parliament after finding no sign of his declaration of interest in Mahuna Investments, reportedly a fund managed by his cousin and injected with money from the collapsed VBS bank. 

DA MP John Steenhuisen said there was no sign that Malema had declared an interest in the company Mahuna Investments, as required for MPs' interests for 2017 and 2018.

"Mr Malema does not declare Mahuna Investments in any form for either of these years – not under Shares & Financial Interests, nor under Gifts & Hospitalities, nor even under Sponsorships or Benefits," stated Steenhuisen.

This was after The Daily Maverick's investigative unit Scorpio reportedly matched Malema's movements based on his social posts and public diary, to expenditure on bank statements linked to Mahuna Investments, a company that reportedly belongs to Malema's cousin.

The spending reportedly ranged from designer clothes, to school fees, hotel stays and attending the Durban July horse racing event. 

Scorpio found that at least R5.3m of the R16.1m flowed to Mahuna Investments, according to official Companies and Intellectual Property Commission (CIPC) documents.

READ: EFF leader Julius Malema used VBS-linked loot to splurge on 'big-ticket' purchases - report

Scorpio posits that the money for Mahuna Investments came from a company called Sgamela Investments, linked to EFF deputy leader Floyd Shivambu's brother Brian.

Sgamela reportedly received millions from the now collapsed VBS bank, for apparently not doing any actual work for the money. 

"Members of Parliament take an oath of office swearing to uphold the Constitution and all other laws of the Republic," said Steenhuisen. 

"If the allegations that are being reported on turn out to be true, then Mr Malema would have broken the law not once but many times over, and would have acted against the very spirit of our Constitution which strives to ensure dignity and equality for all the people of South Africa."

He said that if true, the allegations against Malema "exposes him as a hypocrite". 

"Furthermore, this would mean that he had lied to Parliament by failing to take it into his confidence as far as his alleged connections with Mahuna Investments are concerned, and that he had broken the Code of Conduct for Members." 

Steenhuisen said the DA had already laid charges against Malema and the broader EFF leadership on November 22 last year for their alleged involvement in the "looting" of money deposited into the VBS bank. 

Now they will report Malema to Parliament's Committee on Ethics and Members' Interests, for an investigation.

The owner of the Mahuna Investments account is reportedly Matsobane Phaleng.

Phaleng's response to the Scorpio investigation is that the expenses listed in the Mahuna Investments' bank statements are all his own, that the company is a legitimate business, and that he has done no wrong.

He denied that the account was a recipient of VBS money.

But Malema vehemently denied involvement with companies linked to the now defunct VBS Mutual Bank.

WATCH: 'It is a fabrication, it is unfounded' - Malema denies VBS allegations

Leaving a meeting with the Hawks on Tuesday, where he was scheduled to deliver a warning statement relating to a video of him appearing to fire a weapon in public, Malema gave the media a detailed explanation of Mahuna Investments. 

"It's not new. I'm not using Mahuna's money. Mahuna never received money from VBS... Mahuna received money from Sgameka and Sgameka is not VBS," he said. 

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