April 2010 Vol 10, Africa
Big guns probe Malema tenders
The Public Protector has roped in the auditor-general in a high-level investigation into multi-million rand provincial government tenders awarded to a company allegedly co-owned by ANC Youth League president Julius Malema
Advocate Thuli Madonsela will ask auditor-general Terence Nombembe to join her team of investigators in their forensic investigation into whether there were irregularities in the awarding by several Limpopo municipalities of lucrative tenders to SGL Engineering Projects, in which Malema is said to have a substantial interest.
Malema and SGL's co-owner, Lesiba Gwangwa, were silent on the developments last night.
Though Malema failed to answer his phone, Gwangwa fumed: "Why do you want me to comment? I do not have a comment for you. Good bye," before cutting the call.
Malema's spokesman, Floyd Shivambu, and his lawyer, Mpoyana Ledwaba, also failed to answer calls from The Times.
Three of several contracts awarded to SGL that will be investigated are:
- A R39.3-million sewer reticulation project awarded by the Mopani district municipality, near Giyani;
- A R27.9-million street paving and drainage contract awarded by the Greater Letaba local municipality, near Tzaneen; and
- A R28-million tender for several municipal infrastructure projects awarded by the Tzaneen municipality.
Malema's lawyers recently claimed that he had resigned as a director of SGL despite reports that he was still listed as a director on the company's records held by the Companies and Intellectual Property Registration Office.
Kgalalelo Masibi, the Public Protector's spokesman, said the investigation was prompted by complaints by Afriforum Youth and Cope this month.
She said that Madonsela would discuss the SGL tenders with the auditor-general and ask him to assign some of his senior officers to help with the investigation.
"The Public Protector wants to beef up her team of investigators because it is a bit thin," Masibi said. "She will also ask the auditor-general to give our team a forensic dimension."
Masibi said both Cope and Afriforum Youth had asked the Public Protector to investigate the tenders awarded to SGL Engineering and "other matters in Limpopo".
Cosatu welcomed the news of the investigation.
The trade union federation's spokesman, Patrick Craven, said: "We fully support anything that uncovers corruption and the abuse of public office because this is something that we always try to eradicate."
Madonsela said her investigators had not begun their probe but intended to make both a "specific" and a "systemic" investigation of the tender processes of the municipalities concerned.
"We are investigating the possibility of tender irregularities in the municipalities. We have extended it beyond SGL," she said.
Madonsela said tender irregularities were sometimes difficult to investigate but her team would focus on whether those awarded tenders "got it properly in terms of procedure and qualified for it".
The joint investigation follows an exposé by the Sunday Times last month in which Malema was reported to have profited from tenders amounting to R130-million through SGL Engineering in just over two years.
The newspaper reported on Malema's lavish lifestyle: his luxury homes, his Gucci suits, Breitling watches and extravagant parties during which guests were served R700 bottles of whisky and French Moët & Chandon champagne
But despite all this Malema claims that he earns a "middle income" salary.
Recent reports state that several multi-million rand bridges and roads built in Limpopo by SGL were washed away within weeks of their completion.
Another company that reportedly boosted Malema's bank balance is Ever Roaring Investments. It made millions from managing and organising the state-funded annual Mapungubwe Jazz Festival, in Polokwane.
Malema's business interests have reportedly funded his two luxury homes, worth a combined R4.6-million.
Though he has been seen driving several luxury cars, including an Aston Martin and a Range Rover, none of them is registered in his name.
The only car he admits owning is a C63 Mercedes Benz AMG,.
Political analyst Aubrey Matshiqi said that, depending on what the joint investigation uncovers, it "will impose political difficulties for Malema".
"What is important is that the Public Protector must be allowed to investigate independently.
"She must be protected from individuals who would want an outcome that suits their desires," he said.
The Times was unable to contact Afrika Boso, the auditor-general's spokesman, for comment last night.
