Johannesburg - Former African National Congress Youth League leader Julius Malema and four of his business associates are scheduled to appear in the Polokwane Magistrate's Court on Friday on charges of fraud and money-laundering.

According to court papers, Malema is accused of making nearly R4-million from corrupt activities. He was out on R10 000 bail.

His business associates - Kagisho Dichabe, Lesiba Gwangwa, Helen Moreroa and Makgetsi Manthata - were granted bail on September 25.

All four proclaimed their innocence on charges including fraud, corruption and money-laundering.

The State alleges the four misrepresented themselves to the Limpopo Department of Roads and Transport, leading to a R52-million contract being awarded to one of the accused.

According to the court papers, Malema had clear business ties with Gwangwa, the director of On-Point Engineering. Malema's Ratanang Family Trust was an indirect shareholder in On-Point.

The department paid the company R43-million. According to the charge sheet, Malema substantially benefited from this payment, using it to buy a farm worth R3.9-million and a R382 655 Mercedes-Benz.

Malema allegedly did this knowing that the money formed part of the proceeds of crime. - Sapa