Malema's troubles look set to deepen

The public protector has found that Julius Malema improperly benefited from a corrupt tender.

File: Julius Malema arrives at court on September 26, 2012 in Polokwane, charged with money laundering linked to public tenders. Picture: AFP

JOHANNESBURG - Public Protector Thuli Madonsela has found that expelled ANC Youth League leader Julius Malema's Ratanang Family Trust benefited improperly from a multi-million rand tender in Limpopo.

The provincial roads and transport department awarded On-Point Engineering the tender to construct roads in the province, but Madonsela on Wednesday said the company was not eligible for the deal.

Madonsela said the R52-million tender awarded to the company was corrupt.

"On-Point owed its existence as a profit-making establishment that could declare regular dividends, there to, the Ratanang Family Trust is one of two shareholders of Guilders Investments".

Madonsela also found that the company had lied about how long it had existed before being awarded the tender.

The Ratanang trust and Gwangwa Family Trust are the only two shareholders in On-Point Engineering, whose directors were previously charged with fraud for lying to win the tender. They are currently out on bail.

After winning a bid to manage a Polokwane roads project, the company - owned by Guilders Investments -awarded sub-contracting tenders for kick-backs.

The fees for tenders, about R2 million between November 2010 and May 2012, were then allegedly paid into Malema's family trust.

Madonsela concluded it benefited unlawfully.

She could not however find any evidence that Malema had any influence in who won the tender.