The Democratic Alliance has laid charges against the leadership of the ANC Youth League and board members of its investment arm, Lembede Investment Holdings.

"The ANC Youth League is setting an appalling example by trying to sweep the disturbing findings of the Gobodo report under the carpet," DA Gauteng chairperson Jack Bloom said in a statement on Monday.

This follows an article in the Sunday Times detailing findings of a report by audit firm Gobodo into the finances of Lembede.

The newspaper report said senior youth league members should be made to account for millions of rands that went missing from the company, but the league's executive has opted not to pursue individuals who abused company funds.

Bloom said the charges were laid at the Johannesburg police station on Sunday.

According to the affidavit, Lembede board members are charged according to section 34 of the Prevention and Combating of Corrupt Activities Act 12 of 2004 "which makes it an offence not to report a corrupt act to the police, as well as section 20 of this act as an accessory after an offence".

A charge of defeating the ends of justice is also included.

"I have furthermore requested the police to investigate nine findings by the Gobodo report as reported by the Sunday Times newspaper concerning multi-million rand deals that allegedly point to fraud, unjust enrichment and contravention of the Companies Act," Bloom said.

This included dealings with slain mining magnate, Brett Kebble.

The Sunday Times reported that, according to the Gobodo report, Malose Kekana former head of Lembede's Progressive Youth Investment Company, did not account for R2-million paid by Nedbank for the company's stake in the People's Bank.

Malose is now the interim chief executive of the newly created National Youth Development Agency.

It said there was no record of any benefits banked by Lembede from its 10 percent stake in empowerment company Phikoloso Mining, which, at one point, held R270-million in shares in Kebble's Randgold & Exploration Company.

The report, according to the newspaper, said Lembede bought a share in the company Fibretek when it was sold by Denel.

Lembede defaulted on its obligation to contribute R1-million to the company's operating capital.

"As a result, Lembede's share was sold for R200 000, but Gobodo could not find what had happened to that income. The audit report suggests there could have been a violation of the Companies Act," it said.

Gobodo was unable to find any records concerning six deals reportedly entered into by Lembede and was also not able to find enough documentation to look into the status of a deal between Lembede and Kebble's JCI Gold.

The deal appeared to include mineral rights and fishing licences, the Sunday Times reported.

It said the Gobodo report recommended that former league leaders be questioned including Lunga Ncwana and Songezo Mjongile, who were high-profile associates of Kebble, former treasurer Pumezo Mqingwana, outgoing Lembede CEO Lonwabo Sambudla and Kekana.

Sapa

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