HOW JULIUS MALEMA BECAME A MILLIONAIRE.
This focuses on how Julius Malema became a rich man in South Africa.
“You should not compete over material things. Just because you own a leather jacket you think you have arrived or just because you own a Carvella (Italian shoes). We should compete about how many qualifications do you have,” Julius Malema proclaimed to a crowd of poverty stricken supporters.”
Those were words we found in a local newsletter being circulated around an affluent area of Gauteng this past month.
Last month Julius Malema was caught racing around Johannesburg in a Range Rover Vogue SUV worth more than 1 million Rand/£60k.
It appears Malema in fact owns three Range Rovers-one garaged at his summer home, one in Jo’burg and a third kept by his driver. According to public tax records Malema also owns a Mercedes-C63-AMG, a luxury home in the capital, a glorious summer home in Limpopo and frequently travels by private jet.
Then there’s the trust fund and endowment his family controls worth tens of millions of dollars, detailed later in the story.
Malema’s lavish lifestyle – from his luxury homes, Gucci suits, Breitling watches and parties where his guests are served R700 bottles of whisky and Moët & Chandon champagne – flies in the face of a politician who claims to earn a “middle income” salary.”
A company partly owned by the former ANC Youth League president Julius Malema’s family trust benefits directly from multimillion-rand tenders it helps to award.
Limpopo outsourced essential government functions to the company, which means it is engaged in the privatisation of state functions. Malema promotes nationalisation.
On-Point Engineers (Pty) Ltd – a private company headed by Malema’s former business partner, Lesiba Gwangwa, in which Malema’s Ratanang Family Trust owns a stake – cashes in on Limpopo road tenders it is supposed to manage.
On-Point was awarded a R51m tender by the Limpopo roads and transport department in 2009 to design, manage and implement road projects in the province through an outfit called the “project management unit”. This is outsourcing, a form of privatisation.
As part of the tender, On-Point’s duties include supporting the department with the adjudication and awarding of road tenders.
On-Point also signs confidential “back-to-back” agreements with successful contractors, giving it a share of between 50% and 90% of the profits of tenders it helped to award.
The parties are barred from sharing any information about the agreements with third parties.
“Any information shared by the service provider with the National Treasury will be shared on a statistical basis and no names will be made known unless the express written consent has been obtained from the person whose name is to be made known,” reads one of the clauses.
Malema admits owning shares.
Malema admitted to owning shares in On-Point through the Ratanang Family Trust, of which he is a co-trustee. The other trustee is his grandmother, Sarah.
“Yes, we are close to On-Point. We are shareholders as a family,” Malema said, declining to elaborate on the extent of the trust’s shareholding. He said he had not influenced any of On-Point’s tenders, adding: “I just queue when the dividends are due.”
According to the firm’s website, On-Point and, by extension, Malema’s family trust have benefited from at least eight other government tenders, excluding the project management unit contract.
This includes the construction of a high school, the upgrading of roads from gravel to tar and sewer reticulation in the Mopani District Municipality.
In September 2009, Limpopo roads and transport MEC Pinky Kekana had suspended R300m worth of roads tenders and frozen Roads Agency Limpopo’s R1.2bn budget before firing the agency’s board.
Kekana later transferred the R500m maintenance budget of Roads Agency Limpopo (the provincial parastatal overseeing Limpopo’s road network) to a project management unit that is run by On-Point.
A National Treasury source said this might be illegal.
Malema’s admission of shareholding in On-Point again raises questions about the true purpose and administration of the Ratanang Family Trust, whose sole purpose is to look after the interests of Malema’s son.