Julius Malema Wealth and Riches African Millionaire Politician President of South African ANC Youth League (ANCYL)

How to become a Millionaire:

The provincial department of ­local government and housing said reasons for the delays and failures ranged from “emerging sub-contractors with capacity challenges were appointed” to “poor performance by the contractor”.

Malema received about 21 multi-million-rand tenders from eight of the 31 municipalities in Limpopo in the 2008/9 financial year, according to answers to questions posed by the Congress of the People (Cope) in the provincial legislature. Some municipalities failed to answer questions.

Malema raked it in from the ­Mopani, Vhembe and Waterberg district municipalities and the ­Lepelle-Nkumpi, Greater Letaba, Mutale, Makhado and Tzaneen local municipalities.

These are some of the poorest ­municipalities in the province and some have consistently received poor audit reports from the Auditor- General.

SGL Engineering is made up of SGL Engineering Projects CC (of which Gwangwa is sole director) and SGL Engineering Projects (Pty) Ltd, which lists both Malema and Gwangwa as directors. The company operates out of Flora Park in Polokwane.

Malema bought his R1?million home in Polokwane in May 2007 and finalised the sale of the R3.6 million mansion in Sandton two months ago. He has lived in the Sandton house since January 2008, when it was registered in his name for rates and services.

Deeds records indicate that Malema bought the house in August last year – about the time he hosted the party which annoyed some of his Sandton neighbours.

Malema’s lifestyle has come under scrutiny since labour federation Cosatu called on President Jacob Zuma to conduct an audit of ANC politicians and senior government officials who seemed to live a lifestyle beyond their obvious income.

Malema referred questions about his salary as ANCYL president to the ruling party’s treasurer, Mathews Phosa, who said the matter was confidential.

When City Press yesterday asked Malema for comment, he sent a text message back. “Are you married?”

“Yes,” answered the journalist.

“Go and ask your partner those questions,” he responded and refused to comment further.

In a second attempt, City Press contacted ANCYL spokesperson Floyd Shivambu, a close ally of Malema. While the journalist was talking to Shivambu, Malema grabbed the phone and barked: “Are you the person I just spoke to? I answered you already.” He then dropped the phone.

Asked what impact Malema’s failure to complete some of the tenders had on service delivery in the affected municipalities, Limpopo local government and housing spokesperson Clayson Monyela replied: “These people were hired by the municipalities. They are autonomous and do not even consult us before awarding the tenders because they do not have to.”

Cope Limpopo leader Sello Moloto asked for the tender information in the legislature.

“My wild guess would be that Malema’s companies would have gained more than is recorded because some of the municipalities failed to respond to questions.” 

He also said he was a key funder of the league’s recent elective conference.

“He has been driving my cars long before he became president. If Julius wants something like a car I give it to him. I own more than 10 cars. If you look at the car he is driving which is [worth] about R1.2m, it is the cheapest car I own,” Hlabioa said.

But he denied claims by a company insider that the cars were a direct “thank you” for Malema’s help in swinging deals for Hlabioa’s Limpopo company.

City Press has also established that Hlabioa and Limpopo premier Cassel Mathale – accused by ANC opponents of allowing Malema to “run the province” – have had a shared business interest.

City Press has discovered official records which show that MPPJ’s success in housing tenders enjoyed a winning trajectory which mirrored that of Malema’s rise in political power from 2008, when he was first elected league president.

The Limpopo contracts MPPJ won include:

» A R115 million housing tender to complete 2 981 low- cost houses in Mopani and Waterberg district municipalities in Limpopo in the 2007/08 financial year;

» A R15.4 million tender in the Waterberg district municipality in 2007;

» A R3.35 million tender from Public Works for work in the Greater Giyani district in 2008;

» A R11.6 million housing tender for the Mogalakwena local municipality for 300 units in the 2008/09 financial year;

» A R12.9 million tender for additions and renovations at a primary school last year;

» A R15.9 million tender for work at another primary school last year; and

» A R38.2 million housing tender for 700 units in Greater Marble Hall local municipality, also during last year.

This latest revelation comes amid calls for the SA Revenue Service (SARS) to scrutinise Malema’s financial affairs and subject him to a lifestyle audit. This as it emerged that he has flattened his R3.6 million Sandton home to replace it with a new one at an estimated construction cost of between R7 million and R16 million.

This week a defiant Malema told those querying the source of his wealth: “It’s none of your business ... you must mind your own business.

“One of the things I’ve learned in my short life in politics is the ability to live in the conditions of capitalism while fighting it and defeating it.”

The registration of the car in MPPJ’s name means it would not show up in any lifestyle audit and would not incur any tax liability for Malema.

SARS spokesperson Adrian Lackay said a person using a vehicle owned by another entity would only attract tax implications if the person was employed by the other party, and that it would then be viewed as a fringe benefit which would need to be declared.

Malema has been driving the Range Rover (registration ZBM 223 GP) for several months already.

An MPPJ insider said: “Hlabioa is a businessman who is benefiting from government tenders and he has to look after people like Malema with gifts because they support him to get those tenders.

“It is a mutually beneficial relationship. There is no other explanation for Malema driving his car while he is a businessman dealing with government.”

Lehlogonolo Masoga, Malema’s former friend and now ousted Limpopo youth league chairperson, said: “There is nothing called a free lunch in this world. What your investigation has discovered is sufficient”.

But Hlabioa dismissed claims he was looking after Malema because of his political influence.

“Malema is like a son to me, I have been looking after him for many years even before he became the president of the youth league. It is just a coincidence. There is no benefit for me in any way because he has no capacity to give tenders to anyone.”

Malema could not be reached for comment despite numerous attempts. But youth league spokesperson Floyd Shivambu said: “We are not going to comment anything about that. We only discuss political issues in the media, not personal matters.”

Mathale did not respond to requests for comment this week.