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DA: Statement by Mark Steele, Democratic Alliance spokesperson, requesting an audit into Malema’s tenders (11/03/2010)

11th March 2010

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After the news emerged this week that Julius Malema's SGL Engineering Projects has been awarded two new tenders worth R2.2 million by the Polokwane municipality, I have today written to the Auditor-General's regional office in Polokwane, to request a special audit of all tenders awarded to Malema's companies.

There appears to be clear evidence that Malema's companies are operating illegally. For one thing, in order to be involved in this type of tendering, a company must have been registered with the Construction Industry Development Board (CIDB), and have tax clearance certificates (TCC). Reports have made it clear that Malema's companies have neither, and he has yet to deny those claims, or put forward any positive evidence to the contrary.

We have also seen in the press clear evidence that SGL Engineering does not have the capacity to carry out the work that they are tendering for.

These factors add weight to the claim that SGL Engineering and Malema's other companies were awarded tenders because of their political influence and not because they submitted the best bids. The former Limpopo Premier has alleged that these contracts were awarded because Mayors and Municipal Managers were told they would lose their jobs if they did not give the business to Malema.

The questions must be asked: How can these companies be awarded tenders when they have not met the requisite standards? How can a company be awarded tenders when its track record of delivery is so poor? Which bids were turned down in order to give Malema's companies the tenders? Who made the decision to award the tenders to Malema and what process was followed?

The Auditor-General's motto is "auditing to build public confidence". The public's confidence in government has been shattered by the revelations that Malema has been awarded tenders worth R140 million. The Auditor-General can help rebuild it.

Further, I will once again write to the State Tender Board with regard to this latest development. The DA has already asked the Tender Board to investigate as to whether or not there was any irregularity with the tenders awarded to those companies in which Malema has an interest. If they were not tax compliant, however, that makes the case indisputable and the Tender Board would need to either instigate action itself or make recommendations to that effect.

 

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