The High Court application by the party, led by provincial leader Roy Jankielsohn, is aimed at forcing the Free State Development Corporation (FDC) and the Agriculture Department to officially “recognise, verify and appoint the beneficiaries” who until today are yet to receive a cent of the hundreds of millions of rands that have been pumped into the project thus far, despite having a 51% stake in it.

According to 2018 High Court documents, R250 million was invested in the project initially in 2012/13, when it was still managed by Gupta-linked Estina.

Estina, which had no background in agriculture, was selected as the Indian-based dairy company Paras’ partner on the project via a Memorandum of Agreement (MOU). Since the FDC took the project over in late 2014, R20 million per annum continues to be pumped into the project. Jankielsohn questions why the project continues to exist when the selected beneficiaries are yet to receive a cent.

The Free State Agriculture Department has noted the DA’s court bid, informing media they have initiated the process of appointing the beneficiaries as shareholders on the project. The process is expected to wrap up in November 2020.

“The blatant looting in their name has to cease and the registered beneficiaries should be incorporated into the project. The DA met with a group of these beneficiaries on 9 September 2020 on the farm and received their blessing to proceed with the legal proceedings on their behalf,” says Jankielsohn.  

Earlier in the year, the Zondo Commission heard how Estina’s account had just over R16, days before the provincial government deposited the first R30 million into its account. Public Protector Busisiwe Mkhwebane has announced that a report into the Estina Dairy Farm can be expected by the end of October 2020. The public is calling for the politicians behind the project to be held accountable – notably the former Free State Premier, Ace Magashule.

In December 2018, the National Prosecuting Authority (NPA) dropped charges against all the accused in the Vrede Dairy criminal case. NPA spokesperson in the Free State, Phaladi Shuping, said at the time that this is because they were unable to obtain crucial information from the United Arab Emirates (UAE) and India on the case. The accused, former Free State Agriculture head Peter Thabethe; General Manager for District Services at the Free State Agriculture Department, Takisi Masiteng; former Chief Financial Officer (CFO) of the Free State Agriculture Department Sylvia Dlamini; Gupta affiliates and associates, Ronica Raghavan; Nazeem Howa;  Ashu Chawla; and Varun Gupta were let off the hook.

However, in 2020, Dlamini and Thabethe found themselves again behind bars alongside, Lerato Mngomezulu, Disebo Masiteng, Mokemane Ndumo, Mahlomola Mofokeng, and Malikomo Mohapi for fraud, corruption and money laundering in a separate matter. The latter individual is the sole director of Rekgonne Community Projects - a company which entered into an agreement with the Free State Department of Agriculture and Rural Development in 2014 to implement all projects on behalf of the department for a period of two years. Its alleged money intended for the department’s projects was unlawfully paid into Rekgonne’s business accounts and the bank accounts of the accused.            

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