HOD Jankie Takisi Masiteng told Judge Nompumelelo Gusha, during cross-examination by the defence, that he would not say for certain that there was any fraudulent activity in the 2011/12 project.

Masiteng was testifying in the R25 million fraud, corruption and money laundering trial in the Free State High Court in Bloemfontein.

Eight suspects, including government officials, service providers, and companies, are standing trial for allegedly looting the provincial government department's coffers.

Three government officials – including Peter Mbana Thabethe, Seipati Dhlamini, and Dr Limakatso Moorosi – are accused of paying an upfront payment of R12 million to the so-called Gupta Lieutenant Iqbal Sharma's Nulane Investments company in 2011.

The trio stand accused of contravening the Public Finance Management Act (PFMA) during the alleged irregular deviation from the normal tender process.

However, whilst giving his testimony in court on Wednesday 1 February 2023, Masiteng mostly gave insight into the department's policies and documents handed over to the police during a search and seizure operation.

He told judge Gusha that some of the documents handed over to the investigating officers included two contracts between the department and the company in question. 

Masiteng also came under serious scrutiny from the defence team, who accused of him lying in his testimony.

Defence lawyer, Advocate Daniel Mantsha, questioned Masiteng about the 2004 and 2011 policies of Supply Chain Management (SCM).

Mantsha put it to Masiteng that the 2004 policy, mentioned in his affidavit, was in fact an outdated version.

Mantsha said the correct one was the 2011 policy, which Thabethe and others correctly followed when executing the provincial flagship project Mohuma Mobung and when most of the transactions were made to Nulane.

He also questioned the confusion between his statement and that of Shadrack Cezula, who testified in court as a state witness. 

During his testimony in court, Cezula told the court that the former HOD Thabethe removed the SCM manager, Themba Thobeka, from his post for Cezule to act in that position. Mantsha also questioned Masiteng on the official appointment of Thabethe as the HOD of the department.

He said according to Cezula's statement, Thabethe was appointed in April of 2011, and not on 1 August of that year.

However, Masiteng, who also stand accused in the original and revived R280 million Estina Vrede Dairy Project, denied the allegations or assertions by the defence.

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The court has now been told several times that when the department moved out from its old Absa Building in Bloemfontein and relocated to Glen College, some of the documents, including the originals, went missing and could not be recovered.

On Wednesday, a clerk at the SCM unit, the 40-year-old Kenosi Thubisi, who is yet to finish his testimony, was excused by Judge Gusha and he was warned not to share or discuss the contents of his testimony with anyone. Judge Gusha excused him and he must return on 9 February 2023.

The case is based on allegations that R24.9 million was paid to Nulane Investments to conduct a feasibility study for the Free State Province’s flagship Mohoma Mobung project, on the basis that Nulane had unique skills to perform the work.

The state alleged that Nulane Investments, however, had no employees on its books and in fact subcontracted Deloitte to produce the report, for which Deloitte was paid R1.5 million.

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The former head of Free State Treasury and current acting head of Free State Health, Godfrey Mahlatsi, on Tuesday 31 January 2023 also testified in court.

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Mahlatsi testified on the regulations and procedures a department of government needs to adhere to or follow when carrying out programmes of activities or projects.

The trial continues and it is expected to be concluded on 3 March 2023.

Suspects in the case include businessman and former transit board member Iqbal Sharma, former Free State HOD for Rural Development (FSDoRD) Peter Thabethe; former HOD Limakatso Moorosi; former Chief Financial Officer Seipati Dhlamini; Iqbal Sharma’s brother-in-law and a representative of Nulane Investments, Dinesh Patel; and Islandsite director Ronica Ragavan.

OFM News