Malema benefitted from tender fraud - Public Protector

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Public Protector Thuli Madonsela has formally announced her findings that the awarding of the tender by the Limpopo transport department to On-Point Engineering was unlawful, improper and constituted maladministration.

This final report was leaked a few weeks ago.

Madonsela also confirmed in her findings that Julius Malema's Ratanang Family Trust, benefited improperly from the tender that was awarded to On-Point.

"On-Point should never have been awarded the tender for the PMU as it it did not qualify by a long stretch. Evidence suggests that On-Point knew about and started preparing for the bid some time prior to September 2009." she said.

Madonsela also found that On-Point had "paid more than R2m directly to the Ratanang Family Trust in the form of dividends and loans," she added.

"The amount of R1m withdrawn five days after one of the kick-backs was paid under the back-to-back agreements is further accounted for in the bank statements as having been paid towards the Ratanang Farm," said Madonsela.

She said these agreements clearly constituted "kick-backs", a form of gratification envisaged under Section 12 (1) of the Prevention and Combating of Corrupt Activities Act. "The manner in which these agreements were couched suggests that their existence was to remain secret."

The Public Protector also found that the conduct of the head of the Limpopo Roads and Transport Department, Ntau Letebele, in respect of the awarding of the tender bid to On-Point was improper and constituted maladministration.

She said the department made double payments to On-Point and another service provider also contracted to do the same job.

"It mind boggling that the stark discrepancies between the bid document and the tax clearance certificate did not disqualify On-Point or present red flags regarding the possibility of tender fraud to those who dealt with the bid, particularly the HOD."

Malema has been charged with money-laundering and is on bail of R10 000 while his four co-accused and business associates are out on bail of R40 000 each.

They claim they're innocent of charges of fraud, corruption and money laundering.