Julius Malema’s Sandown mansion, which is still under construction, was sold for R5.9 million today in an auction to raise the money Malema owes the South African Revenue Services (Sars). The mansion was bought by businessman Norman Tloubatla, CEO of a company called Magnified Designs.
Malema had reportedly bought the house for R3.6 million, had it demolished and began construction on a more luxurious house, which featured a private cinema.
Last year Sars obtained a R16 million judgement against Malema for unpaid taxes. According to the Mail and Guardian, this amount included penalties and interest. Sars then applied for the sequestration of Malema’s property in order to cover his tax bill.
Malema was given a chance to challenge Sars’ application. He indicated that he would challenge it. However, he either missed the deadline or intentionally did not submit the required documents, which gave Sars a go-ahead to sequester his property.
Earlier this year some of Malema’s household items were auctioned for R54 000, an amount that was considered to be very low by many people since Malema is known to be extravagant.
In March the Asset Forfeiture unit seized his Limpopo farm, which is said to be worth around R4m. Therefore, after the auction of mansion today, it is believed that his remaining debt is below R10 million now. It should be down to about R6million. It is unknown if Malema has any more assets that can be auctioned to cover the remaining debt.
Correction (09 May 2013, 16:05): We have been established (after publication of the above information) that the remaining amount is actually still R10 million. Apparently the farm did not help Malema to pay his tax bill. It was confiscated because it was allegedly acquired fraudulently, not to cover his tax bill.