Iqbal Sharma, a businessman and ally of the Gupta family, and Dinesh Patel, his brother-in-law, pled not guilty to all counts in the Nulane Investment fraud and money-laundering case.
Monday before the Bloemfontein High Court, the couple was being tried alongside five other defendants and three corporations for their alleged involvement in the R24.9-million feasibility study “scam” in the Free State.
Former Free State department for rural development (FSDoRD) head Peter Thabethe, former Free State department of agriculture (FSDoA) head Limakatso Moorosi, former FSDoA chief financial officer Seipati Dhlamini, and Islandsite director Ronica Ragavan are among the accused.
Among the implicated businesses are Nulane, which is owned by Sharma, and Islandsite Investment 180.
In relation to the Estina Dairy Farm scam, it is alleged that between 2011 and 2012, Nulane Investment was paid millions of rands to do a feasibility assessment for the Free State’s Mohoma Mobung project.
The state asserts that at the time in question, Nulane Investment had no employees and instead subcontracted Deloitte to conduct the feasibility study and prepare the report.
The Free State government paid R24,9 million to Nulane Investment for a report that Deloitte later compiled. In contrast, Deloitte’s fee for the work performed for Nulane Investment was merely R1.5 million.
“The case is based on allegations that R24.9 million was paid to Nulane Investment to conduct a feasibility study for the Free State province’s flagship Mohoma Mobung project on the basis that Nulane Investment possessed unique skills to perform the work,” explained National Prosecuting Authority’s investigating directorate spokesperson Sindisiwe Seboka.
“The state asserted that Nulane Investment had no staff on its payroll and had instead subcontracted R1.5 million to Deloitte to generate the report.
“According to reports, the only modification made to the Deloitte report was to identify Paras Diary as a suitable implementation partner for the development of a milk-processing plant in Vrede.”
Sharma, through his attorney Bronwynne Forbay, pled not guilty on behalf of himself and his business. According to Forbay, Sharma has chosen to use his right to remain silent and withhold his statement until the testimony of other witnesses.
Patel, a representative of Nulane Investment, Ragavan, another associate of the Gupta family, and Dhlamini have also pleaded not guilty and provided no justification for their pleas.
Moorosi, who also denied the charges, contended through her attorney that the Mohoma Mobung project was legitimate and government-approved, and that it even had a budget.
The proceeding is anticipated to last until March.
As the state’s first witness, Siphiwe Mahlangu, director of forensic auditing at the National Treasury, has taken the stand.
Mahlangu allegedly participated in the assessment of papers pertinent to the feasibility study and procurement procedures.
»Accused in Nulane Investment fraud case pleaded not guilty«