Africa's Public Procurement & Entrepreneurship Research Initiative – APPERI


Julius Malema

Fraudulent tenders milk Limpopo treasury (South Africa)

IOL News

By Piet Rampedi

January 29, 2012

The Limpopo education department, which accounted for nearly half of the province’s R2 billion cash-flow crisis, awarded R1.2bn school infrastructure contracts irregularly and fraudulently.

The bulk of the tenders were awarded to associates of Premier Cassel Mathale and ANC youth leader Julius Malema, including Rivoni Properties owner Thulani Nkuna.

The department is led by MEC Dickson Masemola, the provincial ANC deputy chairman, who is a close ally of Mathale and Malema.

Nkuna, a Tzaneen-based businessman, was among a Limpopo government delegation, led by Mathale, that visited Italy on a trade and investment mission last year.

The selected contractors were given the lucrative contracts in exchange for donating piles of cash towards the construction of the Limpopo ANC’s luxury headquarters, according to provincial government, ANC and business sources.

Three independent sources said the contractors were told by senior provincial ANC leaders to help finance the R40 million Frans Mohlala House, funded by unnamed businessmen and officially opened by ANC president Jacob Zuma last January.

The Sunday Independent can today reveal that Tumisho Makofane, the education department’s former general manager for school infrastructure, has resigned amid allegations that he played a central role in manipulating contracts for the benefit of businessmen linked to Mathale and Malema.

Makofane confirmed his resignation on Friday, but denied it was linked to the school infrastructure contracts. He also denied he was joining Aurecon, one of the companies which benefited from the multi-million rand contracts awarded under his watch.

“There is no such thing. I am not responsible for the awarding of tenders. You can come see the documents I have so you can see what the situation is,” said Makofane…Read more.

ANC mulls legislation to supersede mining contracts – official

Mining Weekly

JOHANNESBRURG – South Africa’s ruling African National Congress (ANC) wants to forge an economy in which its natural resources best serve the country, says the head of the party’s task team formed to study a proposal to nationalise mines.

National needs could take precedence over mining companies’ desire to export so that the country’s coal, iron-ore and other mineral reserves benefit the continent’s biggest economy, Enoch Godongwana said in an inter- view in Johannesburg.

South Africa’s policies should be guided by the extent to which we can use our resources to achieve a number of goals, among them growth and redistribution, Godongwana said.

Legislation that supersedes any contract you have to ensure the assets meet the country’s needs is an option,” he said. “In certain circumstances, national interest must prevail.”

Citigroup last year valued the country’s mineral resources at $2.5-trillion, the highest of any nation. Leaders of companies including AngloGold Ashanti, Africa’s biggest gold producer, and Standard Bank Group, the continent’s largest lender, have said nationalising mines will curb growth and hinder job creation in a country where one in four is unemployed.

South Africa has the world’s largest reserves of platinum, 30% of the world’s gold, and supplies coal to Indian and European power stations. Anglo American, Rio Tinto Group and BHP Billiton have assets in the country, which is also home to two of the world’s four biggest gold miners and the two largest platinum producers.

The ANC’s Youth League and the Congress of South African Trade Unions, the country’s largest labor grouping and a party ally, say that the ANC will adopt nationalisation as a policy at its national conference next year, and is only looking into the details of how best to do it. The study was agreed to after repeated demands by the youth wing, which is led by the 30-year-old Julius Malema.

If there are some people who say we’re going to nationalise and we’re just looking at the modalities, I’d suggest that person is insulting the intelligence of ANC delegates,” said Godongwana, who opposes State control of industry. “I don’t believe we should take on managing more than we can.” Read more.

South Africa: Zuma not channeling public contracts to relatives

CAPE TOWN/SOUTH AFRICA, 10JUN2009 -Jacob Zuma,...
Image via Wikipedia


JOHANNESBURG (AFP) – South African President Jacob Zuma’s relatives do not inappropriatly benefit from government contracts, a Zuma spokesman insisted Monday, following opposition charges of conflicts of interest.

The president “makes his annual declaration of interest… The declaration is designed to ensure that a conflict of interest does not arise in the performance of his executive office,” spokesman Mac Maharaj said.

South Africa’s main opposition Democratic Alliance (DA) party on Monday said laws regarding the business dealings of the president’s family members needed to be tightened as Zuma relatives were benefitting from “mega tenders.”

“The potential for the individuals closest to the president to be favoured in state deals is considerable,” the DA said in a statement…Read more.

Racial tensions flare in South Africa over newspaper column

Los Angeles Times

By Robyn Dixon Reporting from Johannesburg, South Africa

A South African newspaper columnist was fired Tuesday for writing that an editor at another publication was a “black snake in the grass” working for white masters and probably would have been burned as punishment during the struggle against apartheid.

The editor of the City Press, Ferial Haffajee, published an article last week detailing alleged corruption by Julius Malema, the polarizing youth wing leader of the ruling African National Congress. The article alleges that Malema took bribes from businessmen in return for using his contacts to facilitate government contracts, and it raised questions about how he funds his extravagant lifestyle on a salary of a few thousand dollars a monthRead more.

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