The ANCYL on Monday welcomed the outcome of a probe by the public protector which could find no irregularities in contracts awarded to SGL Engineering Projects, with which ANC Youth League president Julius Malema was involved.
“These findings altogether overturn the allegations spread by the media and rumour-mongers that the ANCYL president was involved in improper dealings with municipalities through SGL [Engineering Projects],” ANCYL spokesperson Floyd Shivambu said in a statement.
“Despite spirited and recurrent clarifications, the media continued to portray the ANCYL president as corrupt and someone who flouted processes in municipalities to get tenders,” he said.
In a statement on Monday, Public Protector Thuli Madonsela said her office “could not determine” whether tenders awarded to SGL by three municipalities “complied with the relevant procurement legislation and other prescripts, due to poor procurement record keeping by the said municipalities”.
One of the contracts was awarded to SGL by the Makhado Local Municipality, four were awarded to the company by the Greater Sekhukhune District Municipality and one by the Lepelle-Nkumpi Local Municipality.
The protector’s office said investigations into awarding tenders to SGL by other municipalities found that the procurement processes “generally complied” with the constitution, the Municipal Finance Management Act, 2003 and the supply chain management regulations.
Probe process
The probe involved ten municipalities and consisted of interviews with municipal managers, chief financial officers and other senior officials involved in supply chain management, and the studying of tender documentation and site inspections of projects relating to the tenders awarded to SGL.
It found “no verifiable information or evidence” that the tenders were awarded to the company through “improper influence”, “comradeship”, “nepotism”, “political affiliations”, or “any other impropriety”.
The completed projects were also found to be “generally of an acceptable quality and standard”.
“The ANCYL stood firm behind the president because we knew that the reports spread were a lame attempt to destroy the character and integrity of the president through lousy newspapers with corrupt journalists, in particular the City Press and Mail & Guardian,” Shivambu said.
“As a matter of principle, the ANCYL and all its leaders are not and will not be associated with dodgy dealings, because we are aware how such can negatively impact on efforts to build sustainable livelihoods for all our people,” he said.
Until November 2009
According to the information received by Madonsela, Malema was involved with SGL until November 2009. He had earlier claimed that he resigned all directorships after his election as league president in 2008.
The tenders under scrutiny included a R2,1-million sewerage upgrade, a R39,3-million sewerage reticulation project, a R27,9-million street paving and drainage contract, a R28m tender for several municipal infrastructure projects and one for roads worth R2-billion.
Malema has denied receiving any lucrative tenders, including any through SGL Engineering Projects.
Madonsela submitted her report on the probe to the Speaker of the National Assembly on August 13.
She recommended that the municipalities involved improve their supply chain management regulations and their keeping of records.
A “lifestyle audit” of Malema in The Star newspaper earlier this year raised questions about whether he was living above his means.
Subsequent weekend reports indicated that Malema financed his lavish lifestyle through directorships, including that of SGL, which it was claimed had benefited from R140-million worth of municipal tenders in Limpopo. — Sapa