NEWS & ANALYSIS

Malema linked company received R52m tender - AfriForum

On-Point Engineers snatched contract from company linked to Young Communists

AfriForum investigation reveals On-Point employee was asked to withdraw from Limpopo tender process due to alleged corruption

AfriForum's investigative unit revealed today that the Department of Roads and Transport in Limpopo officially requested last year on 30 November that an employee of On-Point Engineers, the company in which Julius Malema's Ratanang Family Trust owns shares, had to withdraw from any participation in tender processes in Limpopo, due to alleged corruption.

These revelations are contained in a confidential letter in which Ntau Letebele, Head of the Department of Roads and Transport in Limpopo, requested Lesiba Gwangwa of On-Point to investigate serious allegations indicating that these compromise the Department's procurement procedures and processes by Mr. B. Mhakha, an On-Point employee. The Department requested On-Point in writing to investigate Mhakha's actions (the letter and other documents can be downloaded here - PDF)

AfriForum's enquiries to On-Point and the Department whether said investigation took place and the result thereof remains unanswered and it appears as if nothing came of the requested investigation. Mhakha remains an employee of the company.

According to Nantes Kelder, Head of AfriForum's investigative unit, the allegations of corruption against an On-Point employee raises serious questions regarding the Department of Roads in Limpopo's tender processes, since On-Point was appointed by the Department to conduct the evaluation and election of successful tenders at a fee of R51 974 057 over a period of three years (see earlier M&G report about same tender).

Kelder also indicated that AfriForum has obtained evidence which indicates that On-Point has benefited from awarded tenders, despite the fact that the company has assisted in the allocation process. AfriForum publicised a copy of an agreement between On-Point and Mpotseng Infrastructure CC, which indicates that On-Point would receive remuneration for a tender awarded to Mpotseng Infrastructure. It is agreed in the contract that On-Point's involvement may not even be revealed to the National Treasury.

AfriForum also obtained an invoice in which On-Point requested remuneration of R1,2 million from Mpotseng Infrastructure.

AfriForum is also aware of six tenders to the value of more than R5 million which were awarded to Mpotseng Infrastructure by the end of last year.

Kelder indicated that the information obtained by AfriForum's investigative unit as well as any other information obtained in the process will be submitted to the Hawks. The Hawks recently indicated that they have decided to investigate the complaint of corruption which AfriForum lodged against Julius Malema.

"We decided to reveal the information to send a clear message to those who are involved with corruption in Limpopo. Their actions will be exposed and they are advised to step forward now and reveal their role to the Hawks," Kelder said.

Statement issued by Nantes Kelder, Head: Investigations, AfriForum, August 25 2011

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