Malema's denials: An audit

JOHANNESBURG - On Friday February 19 2010 The Star published its "lifestyle audit" of Julius Malema. The newspaper raised questions over the mismatch between the cars, houses and luxuries the ANC Youth League President was able to afford and his modest salary (estimated at R20,000 a month.)

The mysterious origin of this unexplained wealth was seemingly explained shortly thereafter. On Sunday February 21 the Sunday Times and City Press both reported on how a company of which Malema was a director - SGL Engineering Projects Pty Ltd. - had benefited from some R140m worth of municipal tenders in Limpopo Province.

However, in reply to these articles the ANC, ANCYL and Malema issued a string of vehement denials. He owned only one car they said (a C63 AMG Mercedes-Benz worth a mere R814,000), and the salary he earned from the ANC was well above R20,000. In a joint statement issued in reply to The Star article the ANC/YL said that it was an "untrue fabrication" that "Cde Julius has bought houses for cash. Cde Julius Malema has not at any stage bought any house for cash. Like everybody else, he has purchased whatever houses or property registered in his name through banks."

Malema repeated this claim in his statement on Monday, February 22. He also claimed to have resigned all his directorships following his election as ANCYL president in 2008:

"I instructed my Lawyers to process my resignations from all the corporations and companies I was involved in when I was based in Limpopo Province. I issued the instruction because I vowed to dedicate all my time to serve and give undivided attention to the ANC Youth League as a full time President. I from 2008 stopped being an active director of the companies that I was previously involved in because all my time was dedicated to the service of the organization."

In order to buttress his argument Malema added that "... For the record, those people [SGL] got tenders from the government of Sello Moloto who was opposed to me. If Moloto was given the opportunity to find any corrupt activity on me, he would have jailed me."

Malema's lawyer, Tumi Mokwena, told the Mail & Guardian that "Julius only became aware that he was listed as a director of SGL on Sunday. He didn't know that he was part of the company. I will investigate how he was registered because my instructions are that he never signed to become a director."

Revelations over the past week have raised questions over all these denials. Certainly, the available documentary evidence appears to contradict them.

Malema was elected ANCYL president in April 2008. It would not have been possible for him to resign from SGL Engineering Projects, at this point, as it did not formally exist. According to CIPRO records the concern was only registered as a Closed Corporation on May 28 2008. Malema does not appear to have been a listed director, even after the company was established. There was also only one director named on CIPRO records and that was Lesiba Cuthbert Gwangwa.

In July 2008 Malema's friend and ally Cassel Mathale was elected ANC Limpopo provincial chairman. From this point onwards Sello Moloto was, in his own words, a "lame duck." In terms of a resolution adopted at the ANC's national conference in Polokwane, in December 2007, the Provincial Executive Committee, which Mathale now headed in Limpopo, had the power to appoint all mayoral candidates in the province following the local government elections. (They had to choose from a list of three presented to them by the Regional Executive Committees.) Provincial PECs - through their deployment committees -have also had the power to deploy municipal managers and even chief financial officers.

According to CIPRO records Malema only emerged as an owner and director of SGL Engineering Projects when the concern was converted from a CC to a PTY LTD in early May 2009. This was after the April 22 elections, and the appointment of Mathale as Premier of Limpopo. City Press reported this Sunday that according to company registration records "the company issued 1000 shares [last May] Malema took 700 shares, making him a 70% shareholder while the remaining 30% went to Gwangwa." Furthermore, these records revealed that, contrary to his denials, Malema had "signed on as a director, signed to pass power of attorney to his business partner and signed a third time to take up his majority shareholding [on May 6 2009]."

A few months later, on August 1 2009, Malema purchased the house in Sandown for R3,6m. On December 18 2009 he registered a bond with ABSA bank for R1,5m. Malema also owns a house in Pietersburg which he bought for R1m on May 29 2007, and on which he took out a R850,000 bond on February 27 2009. (These two bonds - totalling R2,35m - would cost about R 23,462 a month to service.)

Accepting that Malema's denials are false and that he has benefited from the tenders granted to SGL Engineering by various municipalities in Limpopo the next question is whether there was illegality involved.

Moloto, now a COPE MPL, claims there was. He told the Sowetan that Malema "got those tenders by intimidating mayors and municipal managers that they would lose their jobs if they did not approve the appointments of his companies." Since the ANC leadership in Limpopo has the final say over the appointment of mayors and municipal managers in the province this threat, if made, would certainly have been credible.

It is not clear what makes the tender bids of SGL Engineering Projects quite so attractive - other than the opportunity they present for municipal mayors and managers to keep their heads. The Sowetan reported last week that SGL Engineering did not meet one of the basic minimum requirements of tendering for public works projects. The company, it said, was not registered with the Construction Industry Development Board. Clause 18 of the Construction Industry Development Board Act (no. 38 of 2000) states:

"A contractor may not undertake. carry out or complete any construction works or portion thereof for public sector contracts, awarded in terms of competitive tender or quotation, unless he or she is registered with the Board and holds a valid registration certificate issued by the Board."

Furthermore: "Any contractor who carries out or attempts to carry out any construction works or portion thereof under a public sector contract and who is not a registered contractor of the Board in terms of this Act, is guilty of an offence and liable, on conviction, to a fine not exceeding ten per cent of the value of the contract so carried out."

Last week City Press carried out an inspection of some of the projects which SGL was supposed to complete. Piet Rampedi reported on Sunday that the company's work was characterized by its poor quality and the failure to pay local labourers promptly (if at all.) The company is, it seems, not particularly good at road and bridge building.

For instance, SGL received a lucrative R27,9m contract from the Greater Letaba Municipality to provide street paving and drainage in Kgapane Township. The project was completed late last year. When City Press inspected the site only a portion of one of the two bridges constructed were still standing.

"A bridge built at the township's Meloding Section" Rampedi wrote, was "effectively a hill of soil covered with pavement. It has no concrete layers. Residents say heavy rains in January swept it away just a few weeks after it was finished."

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cadre deployment in the public administration is illegal too No political party has the power to deploy its "cadres" in the public administration. Good human resource management practices are constitutionally prescribed and the High Court has struck down cadre deployment in the public administration as illegal for . .more want of compliance with the requirements for employment (not deployment) of public servants. Mayors and councillors can of course be deployees of their parties, but municipal managers and CFOs can not. See Mlokoti v Amathole Municipality and another. . .less by Paul Hoffman on March 01 2010, 01:30 Find this comment inappropriate? Report it

They will deploy cadres with impunity.... Now now Paul, if what you claim is true, how is it that the ANC got rid of City Clerks and their staff, responsible for the daily running of cities, from water to garbage removal? In the Old Bad South Africa, these people were apolitical and were doing a . .more good job organising and implementing basic services - in the New Good South Africa, those people were all fired and replaced by Cadres. Now you come and write here that this was illegal and unconstitutional to boot, after it has been going on for 15 years. At some point, even something illegal, becomes common law. Now if cadre deployment is illegal, and has been going on for 15 years without challenge, how then now? The reality is that the ANC writes the laws, appoint the judges, and read the constitution. If you and I accept modern literary theory, then the ANC imbues, by its words and actions, meaning into the constitution. Since the ANC is hegemonic in its relationships with mortals, such as you, and since their judges and people interprets the constitution, do you not think that they define the terms about what is legal and constitutional in terms of cadre deployment? By this I mean that they will continue, with impunity, to deploy their people into the civil service. . .less by JVR on March 01 2010, 02:57 Find this comment inappropriate? Report it

Sustainability Good governance is the cornerstone of sustainability. It's as simple as that. by Lord Max master of infinity on March 01 2010, 03:20 Find this comment inappropriate? Report it

MALEMA Steel, lieg, steel, lieg, steel, lieg. Steel, steel, steel, steel, steel. Lieg, lieg lieg lieg lieg lieg. Amekaar. Sleg. by Bok on March 01 2010, 06:22 Find this comment inappropriate? Report it

the pesky white media... ...getting in my way again I have rights you know! i earned them in the struggle. Or at least by being black if I'm not old enough to have been in the struggle and anyway i doubt this will do anything to dent the ANC's popularity. The . .more people will vote for us even if we steal . .less by julius on March 01 2010, 07:15 Find this comment inappropriate? Report it

Who Will They Vote for ? SAZIM today of the new ANC. Zuma and his boytjiekie. How ? 2mill youths anarchy. Known as intimidation, coercion and promises that pigs will fly. Will the Limpops & Safs believe all this - Yes with a big smile and nod. by CYNIC on March 01 2010, 07:26 Find this comment inappropriate? Report it

TRAGIC THE TRAGEDY IS THAT THE PURPOSELY UNEDUCATED YOUTH WILL CONTINUE TO VOTE FOR THEIR VIOLATED FUTURES. THESE SO CALLED "CHAMPIONS OF THE POOR" STEAL FROM THEIR VERY OWN AND WITH IMPUNITY. ITS THE PRICE YOU PAY FOR AN UNEDUCATED VOTER BASE. ITS ALSO THE . .more PRICE ONE PAYS WHEN THE OFFICIAL OPPOSITION DOESNT KNOW HOW TO TALK TO THE BLACK VOTER ON THE GROUND. THEY DONT POSSESS A TACTICAL MARKETING STRATEGY ON HOW TO ASSURE THE AVERAGE UNEDUCATED BLACK VOTER THAT VOTING FOR THEM WONT SIGNAL A RETURN TO THE APARTHEID ERA. CANVAS THESE PEOPLE AND YOU WILL SEE THAT THIS IS THEIR NAIVE PERCEPTION. . .less by mhlanganyelwa on March 01 2010, 07:44 Find this comment inappropriate? Report it

Shattered dreams Nelson Mandela's dream for us is shattered and I think he weeps bitterly with disappointment. by Buti on March 01 2010, 07:48 Find this comment inappropriate? Report it

Malema, SARs and Metro Police Malema doesnt pay his fines and doesnt pay his taxes - he is stealing from the people he claims to represent. Tax fraud is a criminal offence he shold be behind bars - SARS has not charged a single ANC BEE Black Diamond for tax fraud - who can believe . .more that 100% of these criminals pay their taxes ?? . .less by TaxPayer on March 01 2010, 08:05 Find this comment inappropriate? Report it

Malema - VIP Tax status I see in the Tribune yesterday that Malema's tax affairs have now been given VIP protection status. Sars has a section dedicated to vip people. why are their two sars standards - i must fight with sars to get things done, but if you are a vip, . .more then presumably sars gives you your own sars contact official !!! - is this separate standards for different people in the sars act ? i was under the impression that any sars official who suspected something wrong could investigate things - but now since malema's records are now held by this vip section - clearly the average sars official is excluded and presumably only the "loyal" cadre's are allowed to work the vip section. . .less by Peter on March 01 2010, 08:47 Find this comment inappropriate? Report it

Melemas Directorships Why is everyone so hung up on the directorship issue.? Is he a shareholder that is the question. The two are not necessarily synomous. by Rocky on March 01 2010, 09:09 Find this comment inappropriate? Report it

Give him enough rope ... They all lie so much they cannot remember what they lied about. This scumbag called Malema is so punch drunk with power his tiny little brain battling to deal with it. He is busy self destructing ..he is feeding himself rope and will soon hang himself. by Airwolf on March 01 2010, 09:14 Find this comment inappropriate? Report it

@TaxPayer Indeed, and Jacob Zuma also committed tax fraud, money laundering etc.etc.amongst the 783 criminal charges brought against him. But ALL the charges were dropped on a nonsensical pretext (two guys chatting about whether the charges should be brought on one . .more weekend rather than the next) by a deployed cadre aided and abetted by other deployed cadres and even a paid pliant formerly respected judge. Even though cadre deployment is illegal it is difficult to stop; one would in each case have to prove the cadre was not appointed on merit. The courts would probably not be able to handle the ensuing court load; and with the NDPP himself a deployed cadre who cannot be forced to bring a prosecution, it seems one could only bring such cases to court privately, and in the vast majority of cases this will just not happen. Let's see what happens about Simelane's appointment which, I think, is being contested GCB (or is it GBC?). I do not share JVR's low opinion of the objectivity of the judiciary; I specifically do not agree with his statement that : " If you and I accept modern literary theory, then the ANC imbues, by its words and actions, meaning into the constitution." If challenged in Court the ANC cannot guarantee it will prevail, as has been shown in several cases. It is a pity that there have not been more Concourt challen . .less by flebus on March 01 2010, 09:16 Find this comment inappropriate? Report it

@JVR It is a pity there have not been more Concourt challenges to some of the ANC's racist policies; they get away with their unconstitutional behaviour because no one challenges them in Court. Business has proved to be extremely reluctant to take on . .more the Government in connection with unconstitutional practices flowing from the EE Act and from BEE practices. . .less by flebus on March 01 2010, 09:21 Find this comment inappropriate? Report it

Our Little Julie Just another Idiot looking for a village!! by Rob on March 01 2010, 09:28 Find this comment inappropriate? Report it

Wisdom Wisdom has definitely become a scarce commodity especially with the political leaders of this world. by Bo on March 01 2010, 09:53 Find this comment inappropriate? Report it

Malema and SARS National Taxpayer Union should petition the SARs to investigate all the ANC BEE Black diamonds who are making millions from tax payer money like the 22 million spent to upgrade the Sharpville stadium, that dissapeared. Tender companies and individuals . .more should have their tax affairs in order before getting tenders, and must pay tax on profits - How did Malema as a director, get a tender for government work, when he owes the tax man money ???????????? . .less by Malema Fan on March 01 2010, 09:54 Find this comment inappropriate? Report it

SARS Any company / company director or shareholder whos tax affairs are not in order and up to date should automatically be disqualified from applying for government tenders. Any company whos owners / directors or managers tax affairs are not up to date and in . .more order should automatically be disqualified form tender processing. How did Malema get a tender if his taxes are not up to date ? . .less by TaxPayer on March 01 2010, 10:16 Find this comment inappropriate? Report it

Malema "Black Diamond Deeply flawed with non desireable colour by Shucks on March 01 2010, 10:23 Find this comment inappropriate? Report it

Malema, SARs, Blackmail, TAXES and tenders Malema "got those tenders by intimidating mayors and municipal managers that they would lose their jobs if they did not approve the appointments of his companies." Since the ANC leadership in Limpopo has the final say over the appointment of mayors and . .more municipal managers in the province this threat, if made, would certainly have been credible. - Malemas taxes are not in order - how can he still be granted tenders ? . .less by Eish on March 01 2010, 10:26 Find this comment inappropriate? Report it

Look for material benefit, not directorships As Rocky pointed out, who cares who the directors are? The material benefit accrues primarily to the shareholders. Why would it matter who the directors are? It's not as if the director decides whether or not his company is awarded a government . .more tender. .... I the phrase I'm looking for might be censored. . .less by M on March 01 2010, 10:26 Find this comment inappropriate? Report it

Traitors, thieves Not paying tax is stealing from our people - you are a traitor and a thief who should be spared no jsutice from SARs and the POLICE ! Watch out ANC BEE Black diamonds we will catch you and put you in JAIL !!!! by SARS and SAP on March 01 2010, 10:28 Find this comment inappropriate? Report it

ANC self-enrichment tactics SA law, especially tax & corporate law, has developed a "substance over form" doctrine thanks to schemers like JM. The ANC spin doctors have become particularly adept at hiding behind "form" [eg was Malema technically a member of SGL] rather than . .more substance [Is Malema a beneficiary? Why was a firm with no track record - registered in 2008 - awarded such big contracts? Were competitive tenders canvassed?] Similarly, a number folks are donating some of their newly-acquired wealth for the upkeep of Taking Jake's or his wives' lifestyles, just as Shabir Shaik did. Despite all the king's horses & all the king's men (lawyers, apartheid judges, apparatchiks, deployees, etc) applying themselves to the cover-up, it emerged that Humping Dumpty's relationship with this donor (Shaik) WAS corrupt. Zuma seems to have learnt nothing from this. Blingo Malema seems to be following Zuma's lead. There are also the *political* questions of Malema, the champion of the poor, being the beneficiary of questionable deals (no-one is quibbling over tenders being awarded to qualified bidders, regardless of colour) and why, if he is so passionate about nationalising mineral wealth, he was a director (the only one he has resigned from, according to Cipro) of a mining investment company. . .less by Theseus on March 01 2010, 10:29 Find this comment inappropriate? Report it

What do the bank records show? Surely, he would have had to prove, on paper, to the banking institutions that he was in a position to service those bonds - as well as the vehicle HP..... by Smokin' Gun(ja) on March 01 2010, 10:52 Find this comment inappropriate? Report it

When are we going to have the balls to say, enough! Salary "earned" as stated above is a bit of a shocker. Malema has never "earned" anything in his miserable life. What say: We take our collective taxes and put them in Trust until the ANC Govt sort this cesspool out? It is absurd even by African . .more standards, let alone the rest of the world. How can we allow a few thugs, taxi drivers, politicians and various other bottom feeders to stuff us in the eye? It is precisely this mentality that got Hitler and Communists (Stalin) into power. Come on guys, we are not that stupid, or are we? If I had my way I would begin by busting the SWC wide open with all its FIFA C***, back handers and encourage visitors to stay away and therefore punish these egotistical organisers and their cronies. Sorry, but thats how I feel right now!!! . .less by The Saint on March 01 2010, 10:55 Find this comment inappropriate? Report it

SARS If these criminals paid their taxes, at least 40% of the money they steal will be retured to government coffers, but only to be stolen once again. Why is SARS sleeping - they are scared of Malema and the ANC - If Pravin was more agressive with ANC BEE . .more Black diamonds, he would not have got the Finance Minister job . .less by Tax Payer on March 01 2010, 11:01 Find this comment inappropriate? Report it

CIDB Act It seems even if all else is "right", this Act will need be a difficult one for SGL to escape, though not exceeding 10% allows 0% to be paid! So not much of a problem if you are well connected. by inwiththenew on March 01 2010, 11:02 Find this comment inappropriate? Report it

Bribed Them He did not threaten them with losing their jobs, he got the contracts by offering them a percentage of the contract amount - Wake up man!!! by Scepticle on March 01 2010, 11:25 Find this comment inappropriate? Report it

Stop bitching and do something To those who have the factual information and proof, stop writing and bitching about it and lay charges with the SAPS. Invite the press when the case is opened and let the press play watchdog over the process. If the awarded tenders amounted to . .more undue influence, then lay charges of intimidation. If the tenders did not comply with legislation, then lay charges against those that awarded the tenders (they will probably turn against Mal-enema before going to jail). If the work done by the Mal-enema companies were not up to standard, then lay charges in terms of the Companies act and other service delivery legislation. Etc, etc, etc. If the SAPS screws it up (which in all probability it will), then condemn the incompetence of the SAPS. If the SAPS or public prosecutor refuses to prosecute Mal-enema because the cadres look after their own, then broadcast this to the masses by way of flyers and then let the masses decide next time they vote. I for one will donate money to have these flyers printed and distributed. Lets do something other than just complain. . .less by Ma'at on March 01 2010, 11:38 Find this comment inappropriate? Report it

PLEASE TAKE PICTURES PLEASE GO AND TAKE PICTURES AND VIDEO CLIPS AND POST THEM ON THE WEB FOR ALL TO SEE THE DODGGY WORK. SHOW IT EVERYWHERE FOR ALL TO SEE by PHOTOS on March 01 2010, 11:50 Find this comment inappropriate? Report it

SARS - Independent Are you kidding me..... Do you honestly belive that SARS is independent of this thieving, corrupt ANC government. Do you really believe SARS will investigate "fatface"??? by Charlie on March 01 2010, 15:03 Find this comment inappropriate? Report it

ANC , SARS in curruption scandal Yeah, these guys are best friends, and look out for there buddies (Malema,Zuma & so on) If this was the UK or US, this guys would be held by the IRS and fined or jailed in the matter or days, only in SA do we listen and not do, SARS itself is slack in . .more this regard. . . they are obviously covering this up and not making a big thing, (is it because Oupa is ANC as well ??? ) . .less by Worker BEE on March 01 2010, 15:07 Find this comment inappropriate? Report it

@mhlanganyelwa I could not agree with you more. This has precisely been my view for a long time. by Concerned on March 01 2010, 16:06 Find this comment inappropriate? Report it

What a mess People ask why people continue to vote for the ANC despite all these scandals and stealing. The answer lies in the fear of the alternative. There is a genuine fear of previous domination. Unless this fear is removed the ANC will remain in power. 46 years . .more of National Party rule did a lot to damage the psychological being of Black people in S.A. It is a fact that we try to conveniently ignore. This does not mean that White people are bad. No, but the historical fact of the domination and what happened during that period will remain perched in the minds of many. The fear of the repeat of the holocaust streghtened the resolve of Israel never to allow domination by others. It is the same with S.A. This fear is in the minds of both the educated and uneducated, poor and the rich. There only time the ANC will lose power will be to a predominately black political party. Is that party in existence? I do not know. Maybe yes or no.Will its emergence lead to peaceful and prosperus S.A? I doubt it. Africa is full of such parties that came with much promise only to follow the path previous chartered by the liberation movements. Only through a genuine maturing democracy will we experience peace and prosperity. I doubt it will be in my lifetime though I am not yet 40. No 2 apartheid. A big no 2 the current mess. . .less by Tman on March 01 2010, 16:41 Find this comment inappropriate? Report it

Numbers dont add up This is what inflates cost of doing business in this country, when people who have no background training like this guy get tenders that require acute technical competency. This thing happens right across this country in the tender world. My assessment . .more points to to the fact that Malema is lying. His offensive and aggressive defence made me more suspecious. Numbers just dont add up and worse still he is conducting his own spin doctoring, that is sheer negligence and smacks of desperation. R1m house (R850 mortgage, huge deposit), R3.6m (R1.5m mortgage, fat deposit) now look at this. The second deal happened in 2009 during the recession when the lending criteria was stringent. Banks were asking for 20-30 deposits. Go check if he is even paying mortgages from his own salary. Now add to the already established mortgage payments the instalment of a mercedes (I heard him on Safm say he owns a 2005 Audi). Establish other living expenses and project income that would accommodate this and check whether he is being paid that income. He must just agree that he is tenderprenuer at least he can claim he has not illegaly gotten any tenders period, instead of lies because soon he will have to retract his words when evidence surfaces. . .less by Gambu on March 01 2010, 18:24 Find this comment inappropriate? Report it

Depressing I have the sinking feeling that Malema will get away unscathed. My friends from Maputo inform me the when Samora Machel died in a plane crash, there was rejoicing in the streets. Such is the fate of Africa, where liberators become hated blood . .more suckers. . .less by d on March 01 2010, 20:09 Find this comment inappropriate? Report it

Julius Ceaser I am cleverly pretending to be Robin Hood, steal from the rich mining companies with their "means of production" (sic) and giving to the poor elite. But I am very clever and what I am actually doing is stealing from the poor, you know, the ones that . .more vote for us, and giving to myself. Maybe a friend or woman too. There is no word for bridge in Pedi and why must I know how to build these things? I must lead the youth league in business and if they can make money like I do, they must just do it. When everything starts falling apart I have another clever plan, first I blame the racists and take their things. When the World interferes I will blame Impir..imperal...imperialist and colonialist for what is being done to me now. Being a black diamond is so very expensive these days and I have to buy girls many things to get with them, so I will tender to the day I die. While I do this I will preach all of my limited insight into socialism to the people, because they must be social and happy. It is like 50cent say "The Massacre . .less by Hypocrisy on March 01 2010, 22:59 Find this comment inappropriate? Report it

TendaPretenda !!!! ! by Fred on March 02 2010, 13:19 Find this comment inappropriate? Report it

... we all know, he is going to get away with it all! by Dudu on March 06 2010, 15:04 Find this comment inappropriate? Report it

my relative's richess I am a card carrying member of the African National Congress and will stay with them. I see nothing wrong with our leaders stealing our moneys to enrich themselves and will give them part of my meagre salary if asked to. I am stupid and preffer to remain . .more stupid as long as my relative can get rich and share the spoils with humping dumpty the president. The ANC did nothing for us the poor and therefor we must keep on voting for them. If we vote them out, we will be in big trouble since the opposition parties does not like stupid people and stupid people like me will be chased into the sea with the white man, although I am black. I was born a stupid and will die one, but not anyone's stupid, but that of the ANC. . .less by bulius malema on April 17 2010, 15:43 Find this comment inappropriate? Report it

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