State capture inquiry: Ex-CFO says it was ‘impractical’ to subject Paras to bidding process

The former chief financial officer of the Free State Department of Agriculture and Rural Development, Seipati Dhlamini, told the state capture inquiry it was “not practical” for her to subject Indian dairy producer Paras to a bidding process because it was an investor.

Dhlamini appeared before the commission on Wednesday, testifying about the Vrede dairy project.

Paras never invested in the project.

“What made it impractical is the fact that, it is said that Paras was going to invest R200 million in this project. What I am saying chairperson, I found it to be impractical from the point where I was sitting to say ‘how do I subject an investment to a bidding process’. Maybe there is a way, I would learn but at that point in time, I found it not practical,” she told the commission.

But inquiry chairperson Deputy Chief Justice Raymond Zondo was not impressed with her answer.

“Ms Dhlamini are you sure that is the answer you are giving me?” he asked.

Zondo said there was nothing impractical about inviting other bids.

“There was nothing impractical about inviting other bids here. There was nothing impractical. I don’t understand your answer.”

Dhlamini said if Paras was subjected to a bidding process, it would have said it was not interested in investing in the project anymore.

Again Zondo had some difficulties with her response.

He said the company should have been subjected to competitive bidding.

The commission previously heard evidence from the former head of the Free State Department of Agriculture, Peter Thabethe, who said the department had brought Paras on board because it possessed the required expertise which the project needed in dairy production.

However, Thabethe said it was unclear what expertise the company had brought to the project.

Previous evidence from Vrede businessman Willie Basson indicated he was unhappy with what Paras had to offer, News24 reported.

He said he was unhappy with the three Indian nationals who had not brought any equipment to do the job.

During her evidence on Wednesday, Dhlamini told Zondo she did not ask Thabethe about Estina’s background.

She said she assumed the former department boss had done his work.

“I would have thought that it would be part of the responsibility of the CFO of a government department in a situation such as this to ask the question, this entity that you want the department to have a partnership with, have you done homework on it? Who are the type of people who own it? What is this entity involved in?” asked Zondo.

However, Dhlamini said when the project was done there were talks of Paras being “a huge company [and] you would take it that the due diligence was done, hence why I could not probe those questions. In this case, I did not.”

She said her focus was on Paras which would provide the technical skills.

Asked if Thabethe had nothing concrete to show her regarding Paras, Dhlamini said: “He went there personally, hence I took his [Thabethe] word. I did not ask those pertinent questions.”

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