The newspaper City Press on Monday challenged African National Congress Youth League (ANCYL) president Julius Malema to take legal actions if he truly believed that a newspaper reporter faked his signature to portray him as a bad person.

"We take the allegation very seriously. He should sue us if he believes that we forged his signature," said City Press editor-in-chief Ferial Haffajee.

Addressing members of the ANCYL during the 2011 local elections mobilisation rally, Malema accused City Press of faking his signature.

The paper reported that Malema had lied when he told the media that he held no shares in a company which had won lucrative contracts in Limpopo.

The newspaper said that, according to a company registration record, Malema owns 70% of shares in SGL.

He had also signed as a director, signed to pass power of attorney to his business partner and signed a third time to take up his majority shareholding.

Haffajee said that Malema was given an opportunity to see the documents before the story was published.

"He did not come and see the documents. He only gave us an opinion piece which we placed on page two," she said.

The piece touched on stories published since the allegations about Malema's involvement in SGL emerged last week.

Haffajee said that she would consult the publication's lawyer on Tuesday.

ANCYL spokesperson Floyd Shivambu said that Malema's lawyers would address the media in Johannesburg on Tuesday.