On-Point Engineering: Limpopo Roads Contract Found Unlawful — Malema's Ratanang Trust an Indirect Beneficiary, Case Struck Off in 2015

R43,868,900 (paid to On-Point by June 2012, Public Protector)

documented loss

In 2009 the Limpopo Department of Roads and Transport appointed On-Point Engineers, a one-month-old firm with no staff, as project-management unit for provincial roads on a bid that misrepresented its experience. The Public Protector's "On the Point of Tenders" (10 October 2012) found the award "unlawful, improper and constituted maladministration", that R43.9 million had been paid, and that On-Point, the Ratanang Family Trust and Julius Malema had benefited improperly. Racketeering and fraud charges were struck from the roll on 4 August 2015 for state delay; the NPA declined to re-enrol them in 2019.

The Record In Their Own Words The Evidence The Named What Was Lost Implicated Institutions The Paper Trail

The Record

On-Point Engineers was registered in 2009 and, within a month, appointed by the Limpopo Department of Roads and Transport as project-management unit for the province's roads programme on a bid that misrepresented its experience and capacity. Through Gwama Properties the Ratanang Family Trust — Julius Malema's family trust — held an indirect share. By June 2012 R43,868,900 had been paid to On-Point; a "R52 million" contract value is widely reported but was not verified against a primary source here.

Public Protector Thuli Madonsela's report "On the Point of Tenders", released on 10 October 2012, found the award "unlawful, improper and constituted maladministration", that On-Point, the trust and Malema had benefited improperly, and ordered cancellation and recovery. Malema declined to be interviewed. The NPA charged Malema, On-Point CEO Lesiba Gwangwa and others with racketeering and fraud on 52 counts; on 4 August 2015 Mothle J in the Polokwane High Court struck the matter from the roll for the state's delay, and in 2019 the NPA declined to re-enrol it. Malema called the charges "politically motivated": "I am free to go and represent my people." The scandal ended his ANC career and preceded the founding of the EFF; the state never brought it to trial.

In Their Own Words

Exhibit A · The Defence

“The charges were "politically motivated"; "I am free to go and represent my people."”

— Julius Sello Malema · After the case was struck from the roll, Polokwane · 2015-08-04

The Evidence

Named

Institutions

Sources

Period · 2009–2015

Sector: Transport (Transnet, PRASA, SANRAL) · Scope: provincial (LP)

Alleged & Implicated

People documented as perpetrators, enablers, beneficiaries, orchestrators, political protectors, accused, or convicted in this case. Unless the case status is Convicted, allegations remain untested.

EV·01

Julius Sello MalemaAlleged BeneficiaryConvictedBenefited improperly via the Ratanang Family Trust (PP finding); charges struck off; not convicted

What Was Lost

Finding of improper benefit.

legal proceedingcompleted2012-10-10
PP finds award unlawful; orders cancellation and recovery.
acquittalcompleted2015-08-04
Racketeering/fraud case struck from the roll for state delay; NPA declines to re-enrol (2019).
No trial.