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Mystery mounts surrounding #Gupta arrest

───   TSHEHLA KOTELI 12:48 Tue, 07 Jun 2022

Mystery mounts surrounding #Gupta arrest | News Article
Ajay and Atul Gupta/PHOTO: ANA

The arrest of the Gupta brothers comes two weeks ahead of pre-trial hearing issues being finalised in the R24 million “Vrede Dairy feasibility study” case.

It remains unclear whether the case forms part of the reason for their arrest.

The two brothers, Rajesh and Atul Gupta, were arrested by United Arab Emirates (UAE) law enforcement authorities after a year of being wanted by South African law enforcement agencies with the help of Interpol.

It was previously revealed by prosecutor Peter Serunye that the Gupta family accumulated R49 billion in the country - the millions from the study were reportedly just a portion of this.

It is at the moment unclear when extradition will take place, however, the spokesperson for the National Prosecuting Authority (NPA), Mthunzi Mhaga, confirmed that talks between the UAE and SA are underway to successfully bring the two back to the country to face justice. 

ALSO READ: Free State 'often looted by Guptas'

In the R24 Million feasibility study fraud and corruption case, it is alleged that the funds that were meant for the study were diverted to Islandsite Investments 180 (Pty) Ltd (Islandsite), owned and controlled by the Gupta family, from Iqbal Sharma’s company, Nulane Investment 204 (PTY) LTD. It is alleged that the Free State Department of Agriculture paid the funds to Sharma’s company.

The state prosecutor in the feasibility study fraud and corruption case, Jacyntha Witbooi, stated the Free State province was one of the provinces often looted by the Gupta family and their associates.

ALSO READ: #Vrede adjacent criminal trial set for 2023

The fraud and corruption case in which the pre-trial hearing issues will be finalised on 24 June 2022, includes former Transnet Board member and business partner to Gupta associate Salim Essa and Iqbal Sharma. It also involves three former senior provincial government officials, former head of the department for Rural Development, Peter Thabethe; former head of Department of Agriculture, Limakatso Moorosi, now CEO of Bloem Water; former CFO of Department of Agriculture, Seipati Dhlamini.

They face charges of fraud and money laundering, while the extra charge to former government officials includes contravention of the Public Finance Management Act. The trial of the case is set to be between 23 January and 3 March 2023.

In a statement released by NPA’s Investigating Directorate, Sindisiwe Seboka explains that Nulane Investments however had no employees on its books and subcontracted Deloitte Ltd to produce the report, for which Deloitte was paid R1.5 million. The only change made to the Deloitte report was to identify Paras diary as a suitable implementing partner for the development of a milk processing plant in Vrede.

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