5 October 2008
The New ANC Youth League under Julius Malema wants to wrestle control of the R120-million investment company away from "old comrades" who became "millionaires" in the name of the young people.
Malema's group wants an urgent audit and is expected to dump three board members from Lembede Investment Holdings - the league's financial arm - and replace them with their cronies.
The value of Lembede's assets is estimated at R120-million, but Malema said there was nothing to show for it.
Youth League spokesperson Floyd Shivambu said they wanted to get rid of faceless billionaires.
"If you leave it unaudited it can be problematic, you can find that there are people who are billionaires and millionaires in our name and we don't know anything about that. We don't want people enriching themselves in our name," he said.
Malema made similar comments last week, saying the league had never received any "financial benefit" from Lembede.
Shivambu told Weekend Argus the league was battling to carry out basic functions due to lack of funds, while Lembede is said to be a multimillion-rand investment company.
"All of us want to know what Lembede is all about. We are failing to even put up basic funds as an organisation, but (our) investment arm (is) entering into million rand deals which we are unaware of," he said.
Lembede is the league's investment vehicle whose kitty has grown significantly over the years since 2000 - with a R5-million capital injection from the late controversial mining baron Brett Kebble.
But the league wants an audit of the company's finances, and its directors and board members to account for every business transaction entered into.
On Monday the league will hold a press conference to introduce the new directors appointed to Lembede's board.
The league has seconded its treasurer Pule Mabe and two NEC members Lubabalo Molefe and Maropeni Ntuli, to the board of Lembede to understand "what is happening".
Lembede was until now controlled by a board comprising the league's ousted leaders, including the company's inaugural CEO Songezo Mjongile and former league treasurer Phumezo Mqingwana.
Mjongile and his grouping were defeated by Malema's group at the league's chaotic Mangaung conference.
Malema's detractors have accused him of waging a personal war against Mjongile because the latter did not support him in Mangaung.
Mjongile said: "I don't know what they are talking about. The financial report of the last treasurer general (Mqingwana) made it clear what Lembede achieved. The conference congratulated Lembede for the work done," said Mjongile.
Former treasurer Mqingwana had stated in his last financial report that the league generated funding from various sources including Lembede.
"During our term of office Lembede made significant contributions towards our revenue," Mqingwana had said.
According to Mqingwana's report, the league had generated an income of R7,4-million in the 2006/07 financial year. Its expenditure that year amounted to R7,2-million - leaving it with a surplus of R205 000 for the first time since its founding.
But Shivambu is adamant that the league has yet to taste the fruits of their investments.
"We are investigating the nature and character of Lembede It has been paying salaries of people and entering into deals without us knowing what these things are all about."
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