R37.7m Estina farm fraud case against Gupta buddies starts next month

The R37.7m fraud case against two Gupta associates related to the Estina project has been transferred to the Pretoria magistrate's court.

In a statement on Friday, the National Prosecuting Authority (NPA) said the case against Kamal Vasram and Saliesh Indurjeeth is set to begin on March 9.

The men 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 — charges arising from a joint investigation by the SA Revenue Service and the Investigating Directorate, linked to the failed Free State Estina project.

According to the NPA, the matter has been postponed for the disclosure of the case docket as well as for their attorneys’ financial instructions and instructions on the merits of the case.

“The investigation revealed that Estina submitted customs clearance documents (SAD 500 and invoice) in support of a VAT refund claim. The customs declaration was then scrutinised whereupon the declared value of over R37.7m for a so-called 'new' pasteurisation plant was suspected to be excessively high,” the NPA said.

The suspected overpriced pasteurisation plant, which was imported from India, was invoiced to Estina by Gateway Ltd, a Gupta front company in the United Arab Emirates.

“Evidence already in the public domain suggests that Gateway was used and controlled by the Guptas, as a conduit to launder money and extract funds from SA.

“The state further alleges that the overstated or inflated value was intentionally and unlawfully used by Estina and its sole director, Vasram, to launder funds from SA, to the prejudice of the taxpaying public in general.”

Vasram and Indurjeeth were arrested at the end of December and appeared in the Pretoria regional court where they were granted bail of R10,000 each.

The pair are two of several arrested for the botched project, which during its establishment by the Free State department of agriculture in 2012 was reportedly supposed to empower black farmers. But allegations later surfaced that the project was being used to swindle cash, with high-profile government officials and the Gupta family implicated. 

Others who have been arrested include ex-department officials and Gupta family associate and businessman Iqbal Sharma. 

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