Malema trust fund: DA calls on Public Protector to investigate allegations of corrupt tender processes

The Democratic Alliance (DA) will call on the Public Protector to initiate an investigation into possible tender irregularities involving ANCYL leader Julius Malema. This follows on revelations made in the City Press today that deposits made into the Ratanang Family Trust, of which Julius Malema is the sole trustee, may be payments in return for his assistance in securing lucrative government tenders for various businesses, and for using his political influence to advance various agendas (see City Press report).

If these allegations are true, it would mean that the trust is being used to launder illegal funds. The fact that Julius Malema refused to respond to questions about the trust, and yesterday sought to obtain an interdict against City Press in an attempt to prevent them from publishing the story, seems to suggest that the trust is not entirely above board. Until yesterday, he had repeatedly stated that he welcomed any investigation into his financial affairs and was confident that nothing untoward would be found.

On Monday last week, the DA asked SARS to launch a lifestyle audit into Mr Malema's finances. That investigation and its outcome will remain private. However, it now appears that there is legitimate cause for the Public Protector to investigate his affairs as well, in particular the tender processes that may have resulted in his receiving up to 45% of total profits made from tenders he helped secure. According to the City Press:

• An unnamed businessman has alleged that he deposited R200 000 into the trust's bank account in return for a government tender that was awarded to him. He has stated that he knows of at least 20 other businesses that have done the same.
• Limpopo businessman Matome Hlabioua, owner of MPPJ Property Development and a close friend of Mr Malema, has secured tenders totalling almost R215 million since 2008, when Julius Malema was first elected as the ANCYL president (the Ratanang Family Trust was established shortly thereafter). He has also admitted to providing Mr Malema with luxury cars on several occasions, including the one he now drives, valued at R1.2 million.

If these allegations are true, it could mean that Julius Malema has been actively involved in tender fraud to the tune of hundreds of millions of rands. His claim that he is a "private person" whose affairs should not be subjected to public investigation has already been dismissed in court, and it most certainly is in the public interest to know whether political leaders are involved in corrupt, self-serving practices that promote the interests of a privileged few while the greater majority of South Africans continue to live in poverty.

I will therefore be writing to the Public Protector's Office tomorrow to request that she investigate these latest allegations and establish whether or not Julius Malema has been party to large-scale tender manipulation, bribery and corruption.

Statement issued by Dianne Kohler Barnard MP, DA Shadow Minister of Police, July 224 2011

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