How Julius Malema pulls tender strings

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http://mg.co.za/article/2011-08-05-how-julius-malema-pulls-tender-strings

Julius Malema is doling out state tenders to his pals through a company that is part-owned by his family trust.

The Ratanang Family Trust, founded by Malema, the ANC Youth League leader, holds shares in On-Point Engineering, which administers a large part of the multibillion-rand budget of Limpopo's roads and transport department.

This means that Malema has at least indirect influence over who is awarded tenders from a three-year budget allocation of reportedly R4.6-billion -- although he, On-Point and the department deny it.

In 2009, the department set up a programme management unit (PMU) to take over many of the department's functions in planning, contracting for and overseeing road works.

In a twist at odds with Malema's stance on nationalisation, it outsourced the running of the unit to On-Point for three years at a fee of R52-million.

Since then, companies linked to Malema, his business partner in On-Point, Lesiba Gwangwa, and his friend and political ally, Limpopo premier Cassel Mathale, have shared in some of the contracts administered by the unit.

While there is no evidence of bribery, these revelations come in the wake of City Press allegations about a businessman who allegedly paid a tender kickback into the Ratanang Family Trust. Malema has flatly denied taking kickbacks.
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:whistle:
 
This means that Malema has at least indirect influence over who is awarded tenders from a three-year budget allocation of reportedly R4.6-billion -- although he, On-Point and the department deny it.
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Looks like reaching to me... the report does also seem to suggest no evidence of bribery.
 
Where there is smoke there is fire. Malema must think he can really convince us that money simply grows on trees but he's not alone, he has his own finanancial and legal advisors who are deep in his pocket, guys who know to grease up this pig real good so nobody can catch him.
 
R13... said:
Looks like reaching to me... the report does also seem to suggest no evidence of bribery.
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And the article quite clearly states as much. However this is also at odds with Malema's claim that the trust's purpose is purely charitable. It's quite clear now that that was a lie...
 
Well... look at what he said, he has openly admitted that he facilitates deals using his Trust fund..

facilitation payment
Definition

A payment made to a government official to facilitate approval of some type of business transaction or activity. In some countries, small facilitation payments are considered unofficial fees rather than bribes, but most countries do not make this distinction.
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Business and Politics will always mix. That is what Capitalism is all about. Nothing strange about what is happening in SA, it happens the world over. Julias has learnt well from his comrades.....
 
DJ... said:
And the article quite clearly states as much. However this is also at odds with Malema's claim that the trust's purpose is purely charitable. It's quite clear now that that was a lie...
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The article does not establish the purpose of the trust. Malema's claim, while probably a lie, could still be true. He can still claim the money earned from the company is how the 'charitable' funds gets replenished.
 
They are reaching.... if they go all out on him for nothing then it will just prove that there is a "racist" agenda against him. He becomes the victim and we have to hear his moaning again.

Rather wait for real evidence before they nail him to the cross.
 
R13... said:
The article does not establish the purpose of the trust.
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No need to. Malema already stated it is a charitable trust...

R13... said:
He can still claim the money earned from the company is how the 'charitable' funds gets replenished.
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He cannot. He is then stating that the trust invests for profit, which then means it is no longer a charitable trust, or at least it doesn't qualify as such. Let's face the logic here - the trust in itself is dodgy; the need to have his kid as a beneficiary is very dodgy; the fund's objectives are dodgy because we know he hasn't made the donations he claims to have made from this trust; the nature and purpose of the trust simply do not add up; the fact that the trust is being used to finance a property quite clearly shows that there is nothing charitable about the trust etc

Everything about this is not right, therefore I side with City Press on this one. Malema is as dirty as they come...
 
Nerfherder said:
Rather wait for real evidence before they nail him to the cross.
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They have the evidence. They are slowly releasing it to the public though - this is how they make the most out of this debacle...
 
R13... said:
The article does not establish the purpose of the trust. Malema's claim, while probably a lie, could still be true. He can still claim the money earned from the company is how the 'charitable' funds gets replenished.
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There are many reasons reasons why you register a trust in a Kids name.. but two spring to mind.....
1) Estate tax avoidance with inheritance and such - As there are multiple beneficiaries, I dont believe this one is the case.
2) Tax avoidance and income concealment as you can deposit cheques written to a minor and then draw funds 'as a manager'


Is it known what his Sons name is? ... (perhaps start with the letter J ? ....Coincidentally J Malema too?)
 
This means that Malema has at least indirect influence over who is awarded tenders from a three-year budget allocation of reportedly R4.6-billion -- although he, On-Point and the department deny it.

Since then, companies linked to Malema, his business partner in On-Point, Lesiba Gwangwa, and his friend and political ally, Limpopo premier Cassel Mathale, have shared in some of the contracts administered by the unit.
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How is this not a conflict of interest? Sounds to me like he's using taxpayer money to enrich himself & his friends. Now where's a Hawk when you need one?
 
evilstebunny said:
How is this not a conflict of interest? Sounds to me like he's using taxpayer money to enrich himself & his friends. Now where's a Hawk when you need one?
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They are too busy 'misplacing' the new Arms probe evidence :-)
 
supersunbird said:
Malema has shares in the company, owning shares is capitalistic. Thus he is one of the capitalists that he so denounces.
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His attitude is if you can't beat them, join them. To which his supporters cheered him on. The mind, sometimes she does like to boggle...
 
With regards to property relations, he said the league was told the constitution did not allow changes.

"We can change that constitution. For you to change that constitution you need political willingness from the leadership and you need courageous leaders.

"We must use parliament to change the conditions of our people."
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this part bothers me the most... makes me worry a bit :(
 
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