Reports say that Malema is co-owner of the company SGL Engineering Projects. SGL is said to have been awarded more than 20 contracts, each worth between R500000 and R39-million between 2007 and 2008. Most of these projects came from “cash-strapped” municipalities in Limpopo, some of which claim to be facing dire financial difficulties. Just recently the Limpopo county government requested a ZAR 5 billion loan from the Development Bank of Southern Africa (DBSA) for such projects.
The new “tenderpreneur” (a newly coined name given to those entrepreneurs who have become stinking rich via the South African Government’s tendering system) could not avoid facing the press who have been hounding him since news of his dubious wealth was recently leaked. When asked by reporters on national television station SABC about the origin of his wealth, Malema avoided all accountability and explanations of his lavish lifestyle and the source of his wealth, meticulously protesting, “I am not accountable to you, I am accountable to the ANCYL and ANC…. There are no laws that says politicians can’t be businessmen. The problem with you [white Africans] is that when an [black] African
The big-mouth public servant also happens to be listed as the director of four companies (SGL, Ever Roaring, Blue Nightingale Trading 61 and 101 Junjus Trading).
Malema linked to 'wrecked' taxi rank
Julius Malema has been linked to another failed construction project – a collapsed R2-million taxi rank in Limpopo.
SGL Engineering Projects, a company that has had at least three municipal projects taken over after non-performance, won the tender to build the R2.1m Apel Cross Taxi Rank in Ga-Masemola, south of Polokwane, in March 2006.
At the time, Malema was listed as a director of SGL. When his link to the company was revealed last year he claimed his signature had been forged and said he was never a director. Malema has since resigned as a director.
City Press has obtained tender documents that the municipality previously told the Public Protector had been lost. The documents showed that SGL had subcontracted the construction of the taxi rank to two companies – Ever Roaring Investments and Moloko Business Enterprises.
Malema was also a director of Ever Roaring at the time.
According to the documents, the contract was split in two – R1.8m for construction and R300 000 to SGL as consulting engineers.
Moloko’s director, Mathews Mathabatha, was one of Malema’s business partners in Ever Roaring.
Malema was a director in Ever Roaring until last June.
City Press has identified the following problems with the project:
- The rank was completed in October 2009, two years after its original deadline of August 2007;
- In March 2008 Moloko and Ever Roaring were kicked off the project because of non-performance and another company had to complete the project;
- The Greater Sekhukhune district municipality had initially refused to sign off on the project as it had questions about the roof’s design, according to a probe by Public Protector Thuli Madonsela;
- Water and electricity have still not been supplied to the taxi rank though it is stipulated in the contract;
- One section of the taxi rank’s roof caved in in October last year, a year after construction was completed, and;
- Minutes of several site meetings held between SGL, contractors, labourers and the project steering committee show that some of the labourers were not paid for up to four months.
Municipal spokesperson Willy Mosoma said part of the roof collapsed due to natural disasters and not through any fault of SGL. However, he could not elaborate on these “natural disasters”.
He said the municipality was working with Eskom to supply electricity and water to the rank.
Mosoma’s version of how the roof collapsed was disputed by the chairperson of the Masemola Local and Long Distance Taxi Association Danie Mohlala, taxi drivers and hawkers, who believed it happened because poor quality materials had been used.
Malema, through his spokesperson, Floyd Shivambu, refused to comment, saying he would not respond to questions from this reporter.
In a recent meeting with City Press editors, Malema “banned” Rampedi from all youth league activities after he’d reported on Malema’s business interests.
SGL project engineer Thomas Mulaudzi and company lawyer Mpoyana Ledwaba acknowledged receipt of questions sent to them but they failed to respond.
City Press revealed last year that SGL had been awarded government tenders worth at least R140m by municipalities in Limpopo.
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