R280 million Estina matter transferred to Bloemfontein High Court

2 November 2022

The Bloemfontein Regional Court transferred the R280 million Estina matter to the Bloemfontein High Court. Today former Free State head of Department for Rural Development (FSDoRD), Peter Thabethe; former Chief Financial Officer, Seipati Dhlamini, former Chief Director District Services Takisi Masiteng and Estina Director Kamal Vasram were added to the case , as well as eight companies. The accused join former Free State MEC Mosebenzi Zwane, former Sahara employee Ugeshni Govender and Islandsite former Director Ronica Ragavan.

The accused stand charged with contravening the PFMA, fraud, corruption, and money laundering. They appeared on charges emanating from alleged looting of the Free state Department of Agriculture through a company called Estina. On 05 July 2012, Estina (Pty) (Ltd) entered into an agreement with the Free State Department of Agriculture to establish and implement a dairy farm project in Vrede, to benefit previously disadvantaged farmers and to uplift the people of the Vrede area. In terms of the agreement, Estina was to provide a capital injection of R228 million. Paras Dairy (a company incorporated in India) was presented as Estina’s partner in the Vrede Dairy Project.

The agreement further stipulated that the department was to contribute R342 million including VAT over a period of three years. Estina received R280 million from July 2012 to April 2014. Investigations also revealed that no proper tender procedures were followed with regards the decision to fund the proposed Vrede Dairy Project. Estina did not adhere to its obligations in terms of the agreement as only the department paid its contribution into bank accounts held by Estina.

Issued by Sindisiwe Seboka, Investigating Directorate National Spokesperson, 2 November 2022