Charges dropped against accused in Nulane R24.9m fraud trial

The Bloemfontein High Court has dismissed charges against the accused in the R24.9 million Nulane Investment fraud trial.

This after five of the six accused in the matter applied for discharge applications in terms of Section 174 of the Criminal Procedure Act. Section 174 states that an accused person may be acquitted of charges if the state fails to make its case.

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The accused in the matter, which include three former Free State government officials and associates of the Gupta brothers, wanted the charges against them to be dropped after the high court in February ruled that most of the state’s documentary evidence – which they disputed – was inadmissible in court.

State capture trial

The Nulane Investment case is the first state capture case from the National Prosecuting Authority’s Investigative Directorate (ID) to be taken to trial.

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It is also the same case in which the South African government failed in February to extradite alleged state capture kingpins, Atul and Rajesh Gupta, from the United Arab Emirates (UAE) to face charges of fraud and money laundering.

Accused acquitted

During Friday’s court proceedings, Acting Judge Nompumelelo Gusha ruled that the accused were acquitted of the charges against them.

Judge Gusha said the state failed to prove any common purpose in relation to the alleged Nulane fraud.

“In the circumstances, I make the following order: the application in terms of Section 174 of the Criminal Procedure Act for the discharge of accused number one, three up to eight is granted as follows – accused number is found not guilty and discharged in respect of counts one and two.

“Accused number three and six are found not guilty and discharged in respect of count two. Accused four, five, seven, and eight are found not guilty and discharged in respect of counts two, three and four,” she ruled.

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Judge Gusha also slammed the state for rushing the investigation into the matter, adding some of the documents in the case were altered and the state’s witness – Free State agriculture department official Shadrack Cezula – was dishonest and “evasive” in his testimony.

“No evidence was proffered to this court with regards to when, why, and by whom the documents were altered,” she said.

The five accused in the trial who applied for discharge are former Gupta associate Iqbal Sharma, former head of the Free State Department of Rural Development Peter Thabethe, former provincial agriculture chief financial officer (CFO) Seipati Dhlamini, Sharma’s brother-in-law and a representative of Nulane, Dinesh Patel, and Gupta-owned Islandsite Investments director, Ronica Ragavan.

The companies that were indicted are Nulane Investments and Islandsite Investment.

Accused number two, the former head of the Free State Department of Agriculture – Limakatso Moorosi, did not apply for discharge application. Moorosi was also acquitted of the charges against her.

Nulane R24.9 million fraud trial

The case is based on allegations that R24.9 million was paid to Nulane Investment – a company owned by Sharma – to conduct a feasibility study for the Free State province’s flagship Mohoma Mobung project, which paved the way for the controversial Estina/Vrede dairy project.

Nulane was contracted by the provincial government on the basis that it had unique skills to perform the work.

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

It’s alleged that the only change made to the Deloitte report was to identify Paras Dairy as a suitable implementing partner for the development of a milk processing plant in Vrede.

NPA response

Meanwhile, the head of the NPA’s Investigating Directorate, Advocate Andrea Johnson, said the state was weighing up its options on whether to appeal the court ruling in the Nulane matter.

“We will be reflecting on the judgment with a view to determine legal avenues to explore. The outcome of this case has no bearing on our ability to prosecute other state capture cases.

“We remain resolute in our commitment and ability to vigorously prosecute those responsible for state capture and corruption,” said Johnson in a statement.

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