Newly-elected president of the ANC Youth League Julius Malema says he wants the organisation to sell all the assets in its investment arm, Lembede.
Lembede is valued at more than R120-million. It holds shares in wide-ranging business ventures, including mining, telecommunication, financial services and property.
Most of Lembede’s shares are in companies that benefit from government tenders.
The involvement of the ANCYL leaders in the business activities of Lembede has raised concern from various quarters, including opposition parties. The youth league has been accused of selling its political soul in exchange for financial benefits.
According to the Sunday Times, one of Lembede’s major assets is a stake in a broad-based consortium called Orlyfund Holdings, which has a number of mining assets, comprising largely mineral rights, said to be worth about R1,5-billion.
The deal is one of many empowerment transactions that were engineered by mining magnate Brett Kebble shortly before he was killed in 2005.
Last week City Press reported that the league’s income statements showed a huge increase from R1,3-million in the 2003/4 financial year to R7,4-million in the 2006/7 financial year.
ANCYL treasurer Phumezo Mgingwana reportedly told the recent ANCYL congress that the organisation now had total investments of R122-million and a budget surplus of R205Â 195.
But in an about-turn signalling a new leadership approach, Malema said he was totally against the idea of the youth league’s involvement in business activities.
‘I don’t think the youth league should be involved as an organisation in business because whatever statement you make, you are forced to consult Lembede to ascertain whether it would not compromise their business deals,†he said.
Malema said that under his leadership he would insist that the league’s core activity should be political education, not business.
‘If you do away with these types of activities, maybe people will understand that being in the youth league does not mean you are going to be rich.â€
Malema said people wanted to remain in the youth league although they were above the eligible age because they wanted to retain control of Lembede’s assets.
Prominent youth leaders who are known to have personally benefited from Lembede’s deals include Songezo Mjongile, Andile Nkuhlu and Lunga Ncwana. The three leaders are now the subjects of investigation by the Scorpions for allegedly receiving millions of rands stolen from Randgold and Exploration by Kebble.
Malema told the M&G he intended to raise the youth league’s involvement in business at the league’s congress in June. ‘We have existed as the youth league before without any investment arm. And we continue to exist in provinces without investment arms.â€
Rather than relying on Lembede, the league needed to find a creative way to raise funds to sustain itself, he said.