Polokwane - Clear business ties exist between axed ANCYL leader Julius Malema and businessman Lesiba Gwangwa, the State claimed in court papers on Tuesday.
“From company documentation submitted as part of the bid, it is clear that there is a clear business relationship between Julius Sello Malema and Gwangwa as well as their companies/entities,” according to the charge sheet in a fraud case against four Malema associates.
“According to the said company structure, Ratanang Trust and Gwangwa Family Trust, each owned 50 percent of Guilder Investments.”
The court papers said Malema's Ratanang Family Trust was an indirect shareholder in On-Point.
Gwama Properties was 100-percent owned by Guilder Investment, indicating that the Ratanang Trust had an indirect shareholding in Gwama Properties.
SGL Engineering Project is 70-percent owned by Malema and 30 percent owned by Gwangwa.
Segwalo Engineering is 100-percent owned by Gwangwa, the papers said.
On-Point director Kagisho Dichabe, Gwangwa, Makgetsi Manthatha and Helen Moreroa appeared in court on Tuesday and were granted bail of R40,000 each.
They were charged along with companies On-Point, Gwama Properties, Segwalo Engineering and Oceanside Trading.
The State charges that the four misrepresented themselves to the Limpopo department of roads and transport, and a R52 million contract was awarded to On-Point.
The court heard that another R1 million gratification was paid to Kagisho, Gwangwa, Segwalo and On-Point by Oceanside, Moreroa and Manthatha.
The fraud charges also relate to designs owned by the department.
Weekend reports recorded Public Protector Thuli Madonsela as saying the expelled African National Congress Youth League president made millions from the R52 million tender by On-Point.
Though Madonsela could not find any evidence that Malema interfered in the tender process, she found that he benefited “improperly” from the contract.
Her investigation found that On-Point acted corruptly by signing back-to-back agreements with subcontractors, the newspaper reported.
Madonsela recommended that the tender be immediately cancelled, that the National Prosecuting Authority and the Asset Forfeiture Unit consider criminal action, and that the Master of the High Court investigate the flow of money into Malema's trust.
Malema was due to appear in the Polokwane District Court at 8.30am on Wednesday.
Malema faces a charge of fraud and money-laundering relating to the On-Point tender.
The four accused handed themselves over to the police on Tuesday morning before their court appearance. - Sapa