Posted on 26-09-2012
Filed Under (Jubius Dillema) by Chloe Davies

EXPELLED African National Congress Youth League president Julius Malema will be charged in the Polokwane Magistrate’s Court with money laundering amounting to R4.5m, according to a draft charge sheet.

It lists 10 accused people and companies and details a complex web of alleged corruption, fraud and money laundering — with On Point Engineering, of which Mr Malema is an “indirect shareholder”, at the centre.

On Point is one-third owned by Guilder Investments, which is in turn 50% owned by Mr Malema’s family trust, the Ratanang Trust.

According to the draft charge sheet, in 2009 the Limpopo roads department invited tenders for a programme management unit to be made up of architects, land surveyors and engineers.

The tender, valued at R52m, was awarded to On Point after “several misrepresentations”, according to the draft charge sheet. These included that the firm had nine years of experience, when it had been formed only a month before, and listed executives or senior managers “when in fact some of the said persons were never employed by, or associated with, On Point”, the draft charges allege.

Once installed as the programme management unit, the alleged corruption continued, the draft charge sheet read. On Point contracted with the department to provide drawings and designs, for which it was paid almost R8.5m. The company then entered into “secret agreements” with other service providers that also contracted with the department for engineering services.

“Most of the payments received as a result of the said secret agreements were channelled through other entities to pay for the farm which Ratanang Trust, as represented by Julius Malema, was buying for an amount of R3.9m.”

But the drawings submitted by the other service providers were identical to those On Point had provided to the department. The service providers were paid by the department, and in turn allegedly paid a “fee” to On Point.

One of these service providers, Generic Core IT, was paid R285,440 by the department for designs and drawings. It allegedly “in turn drew a cheque for … R382,685 in favour of a Mercedes-Benz dealership as part payment towards the purchase of a Viano used by Julius Malema,” the draft charge sheet read.

The charge sheet also detailed how a tender was awarded to Oceanside Trading for the maintenance of a road in Limpopo’s Mopani district. Oceanside was allegedly given preferential treatment by the bid evaluation committee — on which directors of On Point served.

Oceanside was paid more than R6m for the contract. “Soon after receipt of the aforesaid payment by Oceanside, the latter, in turn, made a payment of R1m … for the benefit of Ratanang Trust; one of whose trustees is Julius Malema,” said the charge sheet.

Although the 10 accused face various criminal allegations, Mr Malema was accused of “acquisition, possession or use of the proceeds of unlawful activities”. A schedule attached to the charge sheet set out 16 payments, from “January 2009 (to) November 2011”, which Mr Malema is alleged to have received as “proceeds of unlawful activity”.

Although the farm was purchased by another accused, Lesiba Cuthbert Gwangwa, the charge sheet said there was a “clear business relationship” between him and Mr Malema. The Gwangwa family trust owns the other half of On Point’s shareholder, Guilder Investments.

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