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On-Point: What you need to know about Malema’s engineering company

The bulldog who put Oscar Pistorius away has now officially confirmed that EFF leader Julius Malema is AfriForum’s next target.


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On Thursday morning, Advocate Gerrie Nel and AfriForum sat down to announce who their special private prosecutions unit was going after next. In the days leading up to the press conference, the group had promised that a “head of a political party” would face their wrath. Everyone guessed: Julius Malema.

The guesses were correct. AfriFoum explained their decision to charge Malema but everyone still wants to know what the hell this “On-Point” company is.

Well, let us help you out with that.

What is On-Point engineering?

On-Point engineering made headlines in back in 2012 over tenders it was awarded in the Limpopo province.  At the time, Malema was fresh out of the ANC Youth League and had a stake in On-Point. For a period, he was even a director in the company.

Malema is the sole proprietor of something called the Ratanang Family Trust. Eyebrows really started being raised when some of the money from the tender was paid from On-Point into the trust.

How big was this tender?

The Limpopo Department of Roads and Transport paid R43m to On-Point to construct various roads and bridges. The work was all completed but an investigation was still called for.

Former Public Protector Thuli Madonsela carried out her own investigation and eventually revealed that Malema improperly benefited from the Limpopo government contract.

“Our primary question was: Did Malema benefit? We are saying ‘yes’ – an emphatic yes. The awarding of the tender to On-Point by the department was unlawful‚ improper and constituted maladministration,” Madonsela emphasised at the time.

Madonsela handed her evidence to the Hawks but the case was eventually struck off the roll. The NPA has taken no action in the years since, hence AfriForum’s latest announcement.

On-Point’s Chief Executive at the time, Lesiba Gwangwa, was said to be a close friend of Malema’s. In 2012, national treasury blacklisted On-Point engineering from doing any business with government.

In her report, Madonsela found that On-Point paid R2.17m through R100 000 per month for 17 months dividends payments into Malema’s Ratanang Family Trust. R200 000 in “unspecified loans” also appeared in the trust’s bank account.

Just five days after one of the so-called kickback payments was made, R1m was withdrawn and used towards the purchase of a farm. Payments of R160 000 and R100 000 were made from the trust to “Sandton Property” and “Sandowns Property”

Madonsela also found evidence that suggested the trust was “probably used as a vehicle for the transfer of funds obtained through an unlawful process”.

The EFF leader has continuously denied that he stole anything or benefited illegally. In 2015, he had this to say on the matter:

Unsurprisingly, he has now told AfriFoum and Nel to “bring it on”. Where will this one end up, folks?