Gupta associates linked to R37.7m Estina Dairy Farm fraud appear in court

The trial against Gupta-linked Estina Dairy Farm accused Kamal Vasram and Saliesh Indurjeeth has been postponed to next year.

The duo, who are out on bail, appeared before the Pretoria Regional Court on Thursday.

Vasram and Indurjeeth face charges of fraud, contravention of Section 54(1)(A) of the International Trade Administration Act and contravention of Regulation 22 of the Exchange Control Act. The charges stem from a joint investigation by Sars and the National Prosecuting Authority’s (NPA) Investigating Directorate.

Charges

The charges arise from a joint investigation by Sars and the Investigating Directorate (ID) into the failed Free State project, and both have pleaded not guilty to all the charges.

An investigation by the Investigating Directorate Against Corruption (IDAC) and Sars into the Estina Dairy Project revealed that the accused allegedly submitted fraudulent and inflated customs clearance values, totaling approximately R37.7 million, for a pasteurisation plant imported from India. The plant was declared to be new, while it was allegedly second-hand.

The importation of the pasteurisation plant was allegedly invoiced to Estina by Gateway Limited in the UAE, a company linked to the Guptas.

IDAC spokesperson Henry Mamothame said the matter was postponed to 18 March 2025 for further trial.

“The accused remain out on R10 000 bail each.”

ALSO READ: NPA says it will reinstate Estina dairy farm case after it was struck off court roll

Inflated cost

In July, David Maree, the head of agriculture information and marketing at FNB South Africa testified that although the customs declaration for the Estina plant equipment was for more than R37.7 million, brand new equipment would have cost just over R14 million.

Maree presented about 100 photos showing that the “brand-new” plant was, in fact, not new and would have been unhygienic if used because some of the pipes were mild steel instead of stainless steel.

Maree said it was unusual for a manufacturing plant to have no ceiling because ceilings prevented dust and other dirt from falling onto equipment.

Estina dairy project

The Vrede Dairy Project, initiated in 2012 on Krynaauwslust Farm near the town of Vrede, Free State, was established in collaboration with Estina, a black economic empowerment firm, as part of the Mohoma-Mobung agricultural initiative led by the Free State provincial government.

The land was allocated to Estina through a lease that spanned 99 years. The primary objective behind the million-rand dairy project was to uplift black farmers.

However, a review of bank records allegedly revealed no disbursements were made to benefit black recipients. Instead, the dairy farm allegedly functioned as a mere conduit through which funds were channelled to the corrupt.

ALSO READ: Gupta associates linked to R37.7 million Estina dairy fraud appear in court