Rustenburg - The R280 million Estina dairy fraud and corruption case involving former minister, Mosebenzi Zwane, has been transferred to the Bloemfontein High Court for trial.
The matter would be heard in the Bloemfontein High Court on January 25.
Zwane and his co-accused stand charged with contravening the Public Finance Management Act, (PFMA), fraud, corruption, and money laundering.
The charges stems from alleged looting of the Free State department of Agriculture through a company called Estina.
"On July 5, 2012, Estina (Pty) (Ltd) entered into an agreement with the Free State department of agriculture to establish and implement a dairy farm project in Vrede, to benefit previously disadvantaged farmers and to uplift the people of the Vrede area. In terms of the agreement, Estina was to provide a capital injection of R228 million. Paras Dairy (a company incorporated in India) was presented as Estina’s partner in the Vrede Dairy Project," said the National Prosecuting Authority’s Investigating Directorate spokesperson Sindisiwe Seboka, in a statement.
"The agreement further stipulated that the department was to contribute R342 million including VAT over a period of three years. Estina received R280 million from July 2012 to April 2014. Investigations also revealed that no proper tender procedures were followed with regards the decision to fund the proposed Vrede Dairy Project. Estina did not adhere to its obligations in terms of the agreement as only the department paid its contribution into bank accounts held by Estina," Seboka said.
According to the Investigating Directorate, former Free State head of the Department for Rural Development, Peter Thabethe, former chief financial officer, Seipati Dhlamini, former chief director district services, Takisi Masiteng and Estina director, Kamal Vasram were added to the case, as well as eight companies.
They joined Mosebenzi Zwane, who was Agriculture MEC in the Free State, former Sahara employee Ugeshni Govender and Islandsite former director Ronica Ragavan.
IOL