Julius Malema-watchers focused on the African National Congress National Disciplinary Committee of Appeals (NDCA) this week as it concluded its hearings on the suspension of the youth league president Julius Malema and his colleagues.

But Malema's main problems increasingly lie elsewhere. Law enforcement agencies have gathered what insiders say is sufficient evidence to charge Malema with tax evasion and money laundering and are ready to hand over their dossiers.

Malema's potential woes overshadow the probability that he will have to vacate his youth league presidential post and relinquish his ANC membership when the NDCA makes its findings. There is now a strong possibility of criminal charges relating to his many business dealings linked to his Ratanang family trust.

The existence of the trust was revealed in media reports last year, exposing Malema's personal business and financial interests and dealings involving influential business people in Limpopo.

Malema first came to the attention of the law enforcement agencies in 2010 through media reports of his lavish lifestyle.

Media reports have also revealed the way in which patronage networks work, linking Malema to a series of business people who have made cash donations into his trust after receiving lucrative state tenders which they secured through the help of consulting firms also linked to Malema and other senior ANC politicians in Limpopo.

While Malema's troubling personal tax affairs now appear to be in order after he was given a year to do the necessary paperwork and pay funds owed to the taxman, the same cannot be said for his businesses. The forensic teams (see Fixing Limpopo in this issue) going through his and other ANC politicians' business interests in Limpopo with a fine tooth-comb have discovered several violations of regulations governing Trusts. They are also understood to have established a paper trail linking shell companies to Malema's trust, with what could be instances of money laundering. Malema and his political ally Cassel Mathale (Limpopo Premier and ANC provincial chairman) have come under intense scrutiny from a range of law enforcement agencies.

The next step is for the dossier of findings to be handed to the Hawks, where a decision will be made on whether to lay charges against Malema. Thereafter the National Prosecuting Authority (NPA) will consider the strength of the evidence and whether to prosecute.

Both the Hawks and the NPA has seen several changes in leadership over the last few months, resulting in some instability. This could negatively affect their confidence in going after powerful politicians and business people. Investigators are also keen not to get embroiled in ANC political infighting that has paralleled their investigations.

NDCA chair Cyril Ramaphosa said on Wednesday (25 January 2012) the committee expects to conclude and release its findings by early February. Malema, his deputy Ronald Lamola, treasurer Pule Mabe, secretary general Sindiso Magaqa and his deputy Kenetswe Mosenogi, are appealing the disciplinary committee's sentences. They were found guilty of sowing divisions and bringing the party into disrepute. If Ramaphosa does not set aside the convictions of Malema and of league spokesman Floyd Shivambu, suspended for five and three years respectively, they will both have to leave their positions.