Gupta associate and 3 former FS officials in court for fraud and money laundering
By GADAFFI ZULU
Gupta associate, Iqbal Sharma and three former officials of the Free State Department of Agriculture appeared in the Bloemfontein Magistrate’s court on Thursday on charges of fraud and money laundering linked to the Vrede Dairy Farm.
Accused No. 1, Peter Thabethe is the former Head of the Department (HOD) of Agriculture in the Free State. Accused No. 2, Limakatso Moorosi is the former HOD for Rural Development in the province. Accused No. 3, Seipati Dlamini is the former Chief Financial Officer (CFO) of the department and Sharma.
Accused No. 4 is the sole director and shareholder of Nulane Investments, an entity awarded a contract for producing a due diligence and feasibility study valued at close to R25 million (R24 984 240) in 2011. Nulane Investments is accused 5 in the matter.
The National Prosecuting Authority (NPA) alleges that the money was diverted to a company owned and controlled by the Guptas, Islandsite Investements.
The NPA alleges that Thabethe, Moorosi and Dlamini contravened the Public Finance Management Act (PFMA), the department’s supply chain management (SCM) policies and section 217(1) of the Constitution in the procurement process followed to contract Nulane Investments.
“There was no fair, equitable, competitive, transparent and cost-effective procurement for the aforesaid services provided by [Nulane Invesments].
“There was no competitive bidding process or other legal system to ensure market related values and the procurement was not approved by any bid committee of the department,” the NPA alleges.
According to the NPA, after Nulane Investments was awarded the contract, the company immediately outsourced the services to Deloitte at a cost of R1 538 457, 86.
The NPA said Deloitte subsequently identified Paras Dairy, based in India, as the suitable implementing partner for the development of a milk processing plant in Vrede, Free State.
Meanwhile, testifying at the Commission of Inquiry into State Capture chaired by Deputy Chief Justice Raymond Zondo in August 2019, Thabethe said he had conducted research on the Paras dairy farm using his desktop before deciding to adopt its business model.
It was reported on Thursday that Moorosi and Dlamini are expected to apply for bail on Thursday afternoon, while Thabethe and Sharma’s bail applications are due to be heard on 7 June.
The NPA’s Investigating Directorate (ID) is expected to oppose bail.
There are a total 17 accused in the matter, including Gupta brothers Atul and Rajesh, who are accused number 13 and 14, respectively.
In a statement on Wednesday following the arrests of Sharma, Thabethe, Moorosi and Dlamini, the NPA said the arrest of a fifth suspect is imminent.
The NPA has said that some of the accused listed in the charge sheet are currently not in South Africa and that it will apply to Interpol to assist with the execution of arrest warrants Atul Gupta and his wife, Chetali, Rajesh Gupta and his wife Arti, among others.
ID head, Advocate Hermione Cronje said: “The modus operandi in this case appears to have been replicated in other government departments and projects. It is therefore critical that the evidence gathered in this matter is presented to court and a verdict obtained expeditiously. It is for this reason that the prosecutors have decided to proceed separately against the accused currently in the country and those abroad as the process of arrest and extradition may unduly delay the trial.” Dlamini and Moorosi were granted R10 000 bail.
