ANC leader fights claim he got rich off state contracts

JOHANNESBURG - South Africa's most outspoken politician Julius Malema was at the centre of a row yesterday after allegations he bankrolls his lavish lifestyle through lucrative state contracts awarded to his companies.

The fiery leader of the ruling ANC's Youth League accused critics of conducting a "smear campaign" after he was accused of pocketing millions of rands from government infrastructure projects.

After refusing to answer questions and telling reporters they had "no right to know", the self-styled voice of the people held a press conference yesterday to "clarify" the situation.

"I take serious exception for being audited by media institutions through spreading of lies and rumour," he said.

"Spreading lies and rumours that I have millions [of rands] puts both me and my family in danger, as criminals might believe the lies and resort to criminal victimisation against myself and my family with the hope that I have money."

Malema was the mouthpiece for stinging attacks on President Jacob Zuma's political rivals before and after the elections in April last year.

He has led calls for South Africa's mining industry to be nationalised and openly accused opposition parties, such as the Democratic Alliance, of racism.

But his critics have also accused him of being one of the country's leading "tenderpreneurs" - ANC politicians who use their connections to profit from state tenders.

The man who claims he won over the youth vote by making the ANC cool is often seen in designer labels and travels around in a fleet of luxury cars.

He frequently hosts parties at Johannesburg's trendiest nightspots where expensive whisky and Veuve Clicquot champagne is on tap, according to his unofficial biographer Mandy Rossouw.

Despite being relentlessly attacked in the media, Malema has been spoken about as a future head of the ANC. Zuma appeared to encourage that speculation last year when he referred to Malema as a "leader in the making" and someone "worthy of inheriting the ANC".

The youth leader, who has never had a job outside the ANC, was revealed on Monday as the partial beneficiary of more than 20 state contracts awarded between 2007 and 2008, some worth as much 36 million rand ($6.6 million).

According to the South African Sunday Times, some 120 million rand-worth of government tenders were awarded to SGL Engineering, a firm which Malema co-owns with Lesiba Gwangwa based in Limpopo, one of South Africa's poorest provinces.

The contracts were for projects from road and pavement construction to refurbishing cemeteries. And while public documents show some projects were completed on schedule, most were not, the newspaper said.

When contacted by the Independent, Gwangwa refused to comment on the contracts.

In a furious response yesterday Malema said he would not "dignify these misrepresentations and lies" about SGL. But he said he was instructing lawyers to process his resignation from his business interests in Limpopo province.

He had earlier insisted there was no rule that said a "politician could not be a businessman".

The 29-year-old son of a housemaid whose salary is less than 20,000 rand a month owns two luxury homes. He insists he is the victim of mining interests who want to block nationalisation, which he says will become ANC policy.

Malema has retained the backing of the ANC which said he had broken no ethics rules or laws.

His critics have called for an investigation into his business interests. And the AfriForum youth organisation has written to South Africa's revenue service demanding it conduct a "lifestyle" audit of the politician.

- INDEPENDENT