Public Protector Thuli Madonsela has found that former ANC Youth League leader Julius Malema made his millions from a fraudulent tender, according to a Sunday report.
Although Madonsela could not find evidence that Malema interfered in the tendering process, she found that his Ratanang Family Trust benefited "improperly", City Press reported.
Madonsela proposed that 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.
According to City Press, Madonsela's investigation also found that On-Point 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 Madonsela's report.
The public protector recommended that 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, according to City Press.