The former Head of the Department (HOD), who is now on pension, yesterday told the commission why the controversial Vrede Dairy project was deemed important during his tenure. 

Amongst his reasons for establishing the failed Gupta-linked Estina project, was the number of small milk dairies that were closing down, the potential it had for job creation, to get black farmers on board as well as the potential it had with regard to helping small farmers who had not entered into the industry on a larger scale. 

Thabethe’s hearing on Thursday further placed procurement procedures in the Free State under the spotlight. This, as he had to explain the department’s rationale for entering into a contract with an Indian-based milk processing company - Paras – as their service provider, whereas there were other milk producers in India that rank higher. 

The authenticity of the research allegedly conducted for this multimillion-rand project also got under scrutiny. Thabethe is this morning expected to shed more light on his trips to India, reasons why he signed off on the project and whether he was politically influenced to sign off on documents set to be presented before the commission as an accounting officer.

The former HOD was amongst the eight Gupta associates who faced criminal charges relating to the project back in 2018 before it was provisionally withdrawn in the Bloemfontein Magistrate’s Court.

He was amongst those accused of benefiting from the R220 million that was earmarked to assist the more than 80 farmers in Vrede but was looted from the Free State after his department deposited money into Estina’s Nedbank account, which was thereafter moved to the Bank of Baroda pool account.

OFM News