Axed African National Congress Youth League leader Julius Malema benefited from corrupt activities amounting to R4-million, according to papers filed in the Polokwane Magistrate's Court.

The papers say Malema, who is due to appear in the city's district court on Wednesday for money laundering, had clear business ties with On Point Engineers director Lesiba Gwangwa.

Gwangwa and three others appeared in court earlier and were granted R40 000 bail each on charges including fraud, corruption and money laundering.

The State charges that the four misrepresented themselves to the Limpopo department of roads and transport, and a R52-million tender was awarded to On Point.

The court heard that another R1-million gratification was paid for the securing of the tender.

The fraud charges also relate to designs owned by the department.

The State did not oppose bail, saying the accused had cooperated with authorities and were not a flight risk.

The court papers said Malema benefited from the tender by using it to fund a farm worth R3.9-million and to make a payment of R382 655 for a Mercedez Viano.

"...Most of the payments... were channelled through other entities... to pay for the farm..."

Bid documents submitted by On Point Engineers to the department contained several misrepresentations. On Point pretended to be an established and experienced multi-disciplinary firm, when it was not.

"...it was falsely stated that On Point had nine years experience in business when, in fact, the company existed for about one month at the time of submission of the bid."

Names given as executive and senior people at On Point were for people not employed there.

Another alleged misrepresentation was the furnishing of a tax clearance certificate of a shelf company as that of On Point.

"On Point would not have been awarded the said contract, had they provided the correct information," says the charge sheet.

On Point and Gwangwa had a duty to appoint and manage service providers to do projects on behalf of the department.

On Point entered into secret agreements with service providers and in return received sums of money for it.

Court papers said the conduct amounted to "corrupt activities" relating to the procuring and withdrawal of tenders.

The four companies charged were On Point, Gwama Properties, Segwalo Engineering and Oceanside Trading.

Weekend reports recorded Public Protector Thuli Madonsela as saying Malema made millions from the tender.

Though Madonsela could not find any evidence that Malema interfered in the tender process, she found that he benefited "improperly" from the contract.

Her investigation found that On Point acted corruptly by signing back-to-back agreements with subcontractors.

Madonsela recommended that the tender be immediately cancelled, that the National Prosecuting Authority and the Asset Forfeiture Unit consider criminal action, and that the Master of the High Court investigate the flow of money into Malema's trust.

Malema was due to appear in the Polokwane District Court at 8.30 am on Wednesday.