Problems mount for Malema

Media reports say Malema will answer to charges of fraud, corruption and money laundering in a R100m graft case in the Polokwane Magistrate's Court tomorrow (Wednesday) - although this has not been confirmed by his lawyer, who says he has not yet seen the charge sheet - and that his appearance comes at a time when SARS is about to seize his property to satisfy a R16m judgment against him for unpaid taxes. On top of that it has been revealed that an investigation by the Public Protector has linked one of his companies to a fraudulent and possibly corrupt tender worth R52m. And his travails are compounded by incitement charges laid against him by trade union Solidarity, which an expert says have every chance of succeeding (see report below).

A Sunday Times report notes that in the pending case Malema is listed as 'accused No 10' on the charge sheet. He is accused with five individuals and four companies. Among those who will join Malema in the dock are: Malema's business partner, Lesiba Gwangwa; On Point Engineering, of which Gwangwa is a director and in which Malema holds shares through the Ratanang Family Trust; Selby Manthata, the business partner of Malema's ally, Limpopo Premier Cassel Mathale; Malema-linked company Gwama Properties, which Malema and Gwangwa used to buy a number of properties, including houses, farms and open plots; Segwalo Consulting; and Oceansite Trading. Malema has already claimed that the warrant was politically motivated in a bid to silence him. The Sunday Times suggests the case is set to pit President Jacob Zuma's government and the ANC against the ANC Youth League, which has vowed to stand by its former leader. Full Sunday Times report

The R16m judgment against Malema for unpaid taxes was unopposed in the North Gauteng High Court on 11 September. A City Press report says SARS is targeting four of his properties: a half-built mansion in Sandown, Johannesburg; a farm and a smallholding in Limpopo; and a house in Polokwane. SARS spokesperson Adrian Lackay said the R16m included unpaid taxes, penalties and interest. He would not reveal any further details of Malema's tax affairs because a 'taxpayer's confidentiality is a legal obligation imposed on SARS'. City Press notes the file relating to the judgment - which is a public document - was not available in the court archives last week. Tax law consultant, Advocate Alan Lewis, said the judgment showed two things: Malema has a 'hell of a lot of money' and he is in deep trouble. SARS started scrutinising Malema's tax affairs last year after it was revealed that companies he was linked to had controversially obtained lucrative contracts from the Limpopo provincial government. Millions of rands were channelled through Malema's Ratanang Family Trust. The trust also holds shares in the controversial On-Point Engineers, the company at the centre of allegations regarding dodgy contracts with the Limpopo government. According to a Beeld report, Malema has until 2 October to appeal the R16m judgment against him. His negotiations with SARS have already started. Full City Press report Full Beeld report

Malema made his millions from a fraudulent and possibly corrupt tender, according to Public Protector Thuli Madonsela in another City Press report. The paper says it has obtained a copy of Madonsela's provisional report into the R52m tender won by On-Point Engineers from the Limpopo Roads and Transport Department. Malema's Ratanang Family Trust is one of two shareholders in On-Point. Although Madonsela could not find any evidence that Malema interfered in the tendering process, she found that his trust benefited 'improperly' from the contract and that legal action should be taken to recover the money he received. Her investigation also found that On-Point acted corruptly by signing back-to-back agreements with subcontractors. 'Due to the fact that the awarding of the contract to On-Point was based on deliberate misrepresentations and non-compliance with procurement prescripts, its shareholders, including the Ratanang Family Trust ... benefited improperly by means of the payment of 'dividends' and other payments made to it by On-Point,' the report reads. Madonsela recommends that the tender be immediately cancelled; that the NPA and the Asset Forfeiture Unit urgently consider criminal action; and that the Master of the High Court investigate the flow of money into Malema's trust. Full City Press report

Attorney Nicqui Galaktiou has been hired by Malema. According to a report on the News24 site, The Star newspaper reported that Galaktiou had previously and successfully defended, among others, Gijima, SA businessman Robert Gumede and former Zambian President Rupiah Banda's son, Henry Banda. She is a director at Brian Kahn Incorporated Attorneys. She has 12 years experience in motion and trial work and disputing resolution matters and is head of the Commercial Litigation and Dispute Resolution Department. Galaktiou is also a member of the International Bar Association. Full report on the News24 site

Malema is also facing incitement charges for allegedly inciting mineworkers to violence. Regardless of whether he influenced the miners he could be found guilty, according to former Unisa criminal law lecturer Carel Snyman, who claims Malema does not have a valid defence to the charges. A report on the News24 site says Snyman was commissioned by trade union Solidarity to compile an expert view on the matter. The union filed the incitement to violence and intimidation against Malema following comments he made to striking mine workers urging them to make the mines 'ungovernable'. 'It is... immaterial whether or not the mine workers had in any way been influenced by Malema's utterances,' Solidarity deputy general secretary Dirk Hermann said, quoting the view of Snyman. 'Incitement to commit any crime is punishable. The definition of incitement does not distinguish between successful and unsuccessful incitement.' Full report on the News24 site