Malema facing R4.58m money laundering charge

The newspaper says it has seen a copy of a draft charge sheet submitted to the Polokwane Magistrate's Court yesterday that claims Malema was the recipient of the proceeds of crime. It alleges that some of the money the Limpopo Department of Roads and Transport had paid to Malema was used to fund a R3.9m farm and to make a payment on a Mercedes-Benz Viano. The charge sheet was submitted by prosecutor Billy Moalosi when Malema's co-accused, Lesiba Gwangwa, Kagisho Dichabe, Magketsi Manthata and Helen Moreroa were released on R40 000 bail each. The four are facing charges of fraud and corruption in relation to the irregular awarding of a R52m project management unit (PMU) tender tender to On-Point Engineers by the Limpopo Roads and Transport Department. On-Point received payments from the department totalling R43 868 900 in terms of the contract. A report in The Mercury says that according to documents seen by its sister newspaper, The Star, it is alleged that Malema offered On-Point's shareholders R3m to walk when the proceeds of the PMU tender started rolling in. Malema and Gwangwa offered Kagisho Dichabe and the Maketele Family Trust three times the value of their shares in On-Point to get rid of them. The offer was made in September 2010 when millions started pouring into On-Point's account from the R52m PMU was awarded by the Limpopo Roads and Transport Department. Full City Press report Full report in The Mercury (subscription needed)

Bid documents submitted by On-Point contained several misrepresentations, according to a report on the IoL site quoting from court papers. On-Point claimed to be an established and experienced multi-disciplinary firm, when it was not. '...it was falsely stated that On-Point had nine years experience in business when, in fact, the company existed for about one month at the time of submission of the bid.' Names given as executive and senior people at On-Point were for people not employed there. Another alleged misrepresentation was the furnishing of a tax clearance certificate of a shelf company as that of On-Point. 'On-Point would not have been awarded the said contract, had they provided the correct information,' says the charge sheet. On-Point and Gwangwa had a duty to appoint and manage service providers to do projects on behalf of the department. On-Point entered into secret agreements with service providers and in return received sums of money for it. Court papers said the conduct amounted to 'corrupt activities' relating to the procuring and withdrawal of tenders. Full report on the IoL site

The investigation, which is being spearheaded by a specialised anti-corruption task team, has been looking into fraud and corruption totalling about R100m, notes a report in The Times. It says the team, according to Hawks spokesperson McIntosh Polela, consists of detectives from the Hawks, the Special Investigating Unit, SARS, the Treasury and the NPA. The investigation had so far revealed the alleged theft of nearly R100m, Polela said. 'This theft allegedly took place through the irregular awarding of tenders,' he said. 'From company documentation submitted as part of the bid, it is clear that there is a clear business relationship between Julius Sello Malema and Gwangwa as well as their companies/entities,' the court papers say. 'Gwangwa and Dichabe were responsible for preparing documents submitted for the purposes of the bid or recruiting people to join On-Point in various capacities. 'According to the said company structure, Ratanang Trust and Gwangwa Family Trust each owned 50% of Guilder Investments.' Gwama Properties was 100% owned by Guilder Investment, indicating that the Ratanang Trust had an indirect shareholding in Gwama Properties. SGL Engineering Project is 70% owned by Malema and 30% owned by Gwangwa. Segwalo Engineering is 100% owned by Gwangwa, the court papers revealed. Full report in The Times

Public Protector Thuli Madonsela has instructed the Limpopo Roads and Transport Department to blacklist Gwangwa from serving as a director in terms of the provisions of the law, according to a report in The Mercury. In her provisional report into On-Point, Madonsela ordered authorities and the department to also blacklist the company for fraudulently misrepresenting its bid for the R52m project management unit tender and subsequently benefiting from it improperly. 'Commence the process of imposing a restriction penalty on On-Point and Gwangwa in terms of the provisions or clause 23 of the General Conditions of Contract,' Madonsela said. The report says this means Gwangwa and his company may be blacklisted from doing business with the government for up to 20 years. It adds that On-Point has been the cash cow of Malema, his family, and even the ANC Youth League, during his tenure. The company and its sister firms have made more than R400m from Limpopo government tenders since 2007 Full report in The Mercury (subscription needed)

The ANC Youth League (ANCYL) has weighed in on the matter. The body condemned what it terms the use of state resources to settle political scores, in reference to charges brought against Malema. A report on the News24 site quotes the ANCYL as saying: 'We were shocked by these developments as the warrant was timely executed to coincide with a long weekend. This, in our view, was meant to ensure that he spends the whole weekend in jail.' It also condemned leaks to the media regarding the arrest and a report prepared by Madonsela. 'Such lack of restraint and conniving was meant to feed further into the court of public opinion that is in session in the media,' it said. SA's legal system upheld the presumption of innocence until proven guilty. However, what had recently happened was not in line with this principle. 'The fact that even some Ministers intimated knowledge of the charges points to political interference in the administration of justice and it must be condemned,' the ANCYL said. Full report on the News24 site