Malatsi is one of two NNP deputy ministers appointed late last year by President Thabo Mbeki in terms of a co-operation agreement between the NNP and the African National Congress.
Public Protector Lawrence Mushwana has been asked by Van Schalkwyk, who is also the Western Cape Premier, to investigate alleged irregularities surrounding the Roodefontein golf estate development near Plettenberg Bay.
Malatsi, then Western Cape environmental affairs MEC, reportedly pushed through the scheme despite opposition from his own officials and environmentalists.
Malatsi and Peter Marais, the then Western Cape premier, have also been suspended from all party activities pending the probe.
Marais apparently solicited a donation from Italian billionaire Count Ricardo Agusta, believed to own the property for the development.
Augusta owns a helicopter company and several Franschoek farms.
According to media reports, Augusta is understood to have close links to alleged mafiosi Vito Palazzolo, whose son Robert von Palace Kolbatshenko, apparently owns the development company - Sapa.
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