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R16m judgment shows Juju is 'in deep trouble'

24 September 2012
THE SA Revenue Service (SARS) has obtained a R16-million judgment against former ANC Youth League leader Julius Malema for unpaid taxes, according to a report yesterday.

Public protector Thuli Madonsela also found that Malema had allegedly made his millions from a fraudulent tender.

The SARS judgment was obtained in the High Court in Pretoria on September 11.

Malema did not oppose the application by SARS, the newspaper report said.

SARS spokesman Adrian Lackay confirmed the judgment against Malema for R16-million.

He said the amount included unpaid taxes, penalties and interest.

Lackay said he could not give any more details of Malema's tax affairs because a "taxpayer's confidentiality is a legal obligation imposed on SARS".

According to the report, SARS was about to seize Malema's property and assets in Gauteng and Limpopo.

Tax law consultant advocate Alan Lewis said the judgment showed two things: Malema had a "hell of a lot of money" and he was in deep trouble.

Lewis, a former SARS employee, said the revenue service would most likely hand the judgment to a sheriff of the court, who would attach Malema's properties and assets.

SARS started looking into Malema's tax affairs last year after it was revealed that he was linked to companies that had obtained lucrative contracts from the Limpopo provincial government.

Millions of rands were channelled through Malema's Ratanang Family Trust, according to the report.

Although Madonsela could not find evidence that Malema had interfered in the tendering process, she found that his Ratanang Family Trust allegedly benefited "improperly".

Madonsela proposed legal action be taken to recover the money Malema received.

This was according to a copy of Madonsela's provisional report into the R52-million tender won by On-Point Engineers from the Limpopo roads and transport department.

Malema's family trust was one of the two shareholders in On-Point.

Madonsela's investigation also found that On-Point had allegedly acted corruptly by signing back-to- back agreements with subcontractors.

"Due to the fact that the awarding of the contract to On-Point was based on deliberate misrepresentations and non-compliance with procurement prescripts, its shareholders, including the Ratanang Family Trust ... benefited improperly by means of the payment of 'dividends' and other payments made to it by On-Point," the newspaper quoted from the report.

The public protector recommended the tender be immediately cancelled and that the National Prosecuting Authority and Asset Forfeiture Unit urgently consider criminal action.

Madonsela also proposed that the Master of the High Court investigate the flow of money into Malema's trust.



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