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IOL News
5 days ago
- Business
- IOL News
Withdrawal of CFO secondment for Free State official amid Gupta-linked fraud case
A senior Free State provincial government official has had her secondment as the acting chief financial officer of the troubled Maluti-a-Phofung Local Municipality withdrawn as she is facing fraud charges relating to a R25 million contract awarded to the Gupta-linked Nulane Investments by the province's Agriculture Department. Image: Twitter / @SAPoliceService The secondment of a senior Free State provincial government official among the accused in the R25 million fraud case involving Gupta-linked Nulane Investments as Maluti-a-Phofung Local Municipality acting chief financial officer (CFO) has been withdrawn. Free State Cooperative Governance and Traditional Affairs (Cogta) and Human Settlements MEC Saki Mokoena had initially seconded the department's deputy director-general responsible for its specialised support, advice, and intervention unit Seipati Silvia Dhlamini. Earlier this month, Mokoena seconded Dhlamini as the municipality has been without a CFO for months after the contract of Matholase Mazinyo expired in March and was not renewed. Free State Cogta and Human Settlements Department spokesperson, Zimasa Mbewu, said Mokoena has withdrawn the secondment of Dhlamini, and Thuso Ronald Marumo, formerly CFO of the Moqhaka Local Municipality in Kroonstad, has been seconded to be Maluti-A-Phofung acting CFO. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Advertisement Next Stay Close ✕ Ad loading Dhlamini is accused number three in the Nulane matter and was the CFO of the provincial Agriculture Department when the company was awarded the R25m contract to conduct due diligence and feasibility studies into the R334m Vrede Diary Farm Project, part of the broader Mohoma Mobung Programme, run by Indian company Estina on behalf of the department. She has been charged with unlawfully and intentionally, and with common purpose, committing fraud. In April 2023, the Free State High Court withdrew charges against Dhlamini and her co-accused, but last month, the Supreme Court of Appeal ordered they be retried for the same offences they were acquitted of as if they had not previously been arraigned, tried, and acquitted but provided that a different judge presides over the trial. Dhlamini is charged with businessman Iqbal Sharma and his company Nulane Investments, former heads of the Free State Agriculture Department, Peter Thabethe and Limakatso Moorosi, Ronica Ragavan, who represented the fugitive Gupta family's Islandsite Investments, and Dinesh Patel, who is Sharma's brother-in-law and a Nulane Investments representative. During a council meeting in April, assets manager Tsietsi Moremi was appointed acting CFO for a period of three months or until a new permanent CFO was appointed, whichever came first. However, the following month, the council rescinded its resolution and delegated Malekula Melato, the controversial mayor of the troubled municipality, to request Mokoena to second a suitable person to act in the position until a suitable candidate has been appointed. Even before the rescission of Moremi's temporary appointment, in April, Maluti-a-Phofung Municipal Manager Advocate Motsoahae Mofokeng then informed staff in a directive that all the powers of the CFO were recalled and now in his office. 'This is informed by the fact that certain due diligence processes have to be carried out before (the) letter of appointment is dispatched. 'All managers in the finance department should thus report directly to the municipal manager's office forthwith until the said acting CFO receives an appointment letter,' Mofokeng wrote on April 4. In correspondence addressed to Melato dated July 10, Mokoena said he was only in a position to grant the request for a suitably skilled, competent, and qualified candidate in terms of Municipal System Amendment Act 03 of 2022, on such conditions as prescribed, to act in the advertised position until such time as a suitable candidate has been appointed. Mokoena set out a number of conditions including a process plan with timelines on filling of the vacant post of CFO and a provision that all additional cost associated with the secondment such as compensation of the seconded official, an allowance and compensation while on secondment for subsistence and travel etc. are borne by the municipality. Additionally, the secondment must be by agreement, which must stipulate the duration and party responsible for costs. 'The agreement must further include terms of reference, which outline that a person seconded must account to the municipal manager, report in writing at least once a month to the relevant seconding authority with regard to the key performance areas relevant to the position together with the development and implementation of any municipal institutional recovery plan for which the seconded official is responsible,' demanded Mokoena. He said he was seconding Dhlamini and requested Melato to engage Speaker Mandlenkosi Dlamini in order to convene a council meeting on the seconded candidate to allow council to consider the appointment of the seconded candidate and table the conditions for the position of CFO. Mokoena also asked the municipality to forward a signed council resolution in terms of Municipal System Amendment Act appointing the seconded candidates to act in the relevant position after the secondment. Melato was also asked to provide regular progress reports in writing to the relevant seconding authority with regard to the filling of the post and the development and implementation of any municipal institutional recovery plan for which the seconded official is responsible. Mofokeng did not respond to requests for comment.
Daily Maverick
23-06-2025
- Politics
- Daily Maverick
Supreme Court of Appeal's verdict on Nulane case exposes flaws in prosecution and judicial oversight
The performance of the National Prosecuting Authority (NPA) has been a longstanding point of concern, with criticisms focusing particularly on the lack of successful prosecutions in cases arising from the era of State Capture. The implications of failings in the NPA, and the resultant lack of public confidence in the justice system, have serious implications for the rule of law. Political parties have frequently made calls for the resignation of the National Director of Public Prosecutions, advocate Shamila Batohi, despite her tenure coming to an end in 2026. One of the headline cases cited to demonstrate the shortcomings of the NPA is the so-called Nulane case. Multiple accused were tried in the Free State Division of the High Court but were discharged under section 174 of the Criminal Procedure Act. This provision allows for an accused to be found not guilty if there is no evidence at the end of the State's case on which the accused could be convicted. The State reserved several questions of law (a procedure that provides for the very limited circumstances under which the State may effectively appeal in criminal cases), and the Supreme Court of Appeal (SCA) has now handed down a judgment that has significant implications for the justice system in general. The case arose from a public-private partnership that had been intended to generate income through farming, manufacturing, and infrastructure expansion in rural areas of the Free State. Prosecutors alleged that a process followed where public funds were fraudulently extracted from the Free State Department of Agriculture and Rural Development, with funds being laundered through various Gupta-associated companies. No tender process Nulane Investments was appointed, without a tender process, to conduct due diligence and feasibility studies relating to the scheme. But the evidence was that it did not render services to the department, instead subcontracting the services at a cost of just over R1-million, while receiving almost R25-million. Several accused were charged with offences of contravening the Public Finance Management Act, fraud, and money laundering, only to be discharged by the high court. The SCA, however, decided most of the reserved questions of law in favour of the State. It found that the judge in the high court had made the 'disturbing finding' that had been 'central to the entire case' that the State's case had been 'abortive from the start' due to shortcomings in the authentication of key documents. The judge, the SCA found, had failed to look at the totality of the evidence, and had 'closed her mind to the evidence adduced by the State'. The shortcomings in the high court's judgment continued. The SCA found that the judge had applied the wrong legal test in applying the common purpose doctrine; admitted documents into evidence and then ruled them inadmissible; misapplied the rules on the admission of documentary evidence; and misinterpreted and misapplied key provisions of the Criminal Procedure Act. The SCA found the acquittal on one of the counts of fraud 'baffling' and was unequivocal in concluding that the high court had 'made numerous errors of law that resulted in the acquittal of the respondents'. As the SCA points out, the offences in question involved the misuse of public funds that subverted the aims of the project, which undermined 'the functionality of democratic institutions' and endangered the rule of law. The trial in the high court constituted 'a failure of justice' that 'erodes public confidence in the criminal justice system'. The SCA ordered that the accused could be retried for the offences of which the high court had acquitted them. The case provides some degree of vindication for the embattled NPA, although there remain several other cases where questions have been raised about the effectiveness of its prosecutions. Just one example is the recent decision, again from the Free State, where the high court ruled that the extradition of former Free State premier Ace Magashule's former personal assistant, Moroadi Cholota, from the United States was unlawful. Cholota and Magashule are among those accused of fraud and corruption relating to a R255-million contract for the removal of asbestos roofs in the townships in the Free State. And it of course remains to be seen how the State's case will fare as and when the Nulane trial resumes. Role of the judiciary But the SCA's findings do shift attention on to the role of the judiciary. Thus far, judges have largely escaped criticism for prosecutorial failures, which have largely been attributed to failures by the NPA and the police. The SCA's scathing findings about the high court judgment raise serious questions about the judge's handling of the case, and invite scrutiny of the role of judges in these cases. An intriguing element of the context to these cases was a previous request by the Free State Director of Public Prosecutions for the asbestos case to be heard by a judge from outside the province. The request was rejected by the leadership of the Free State High Court, but the SCA decision in the Nulane case may reawaken questions about the allocation of judges to hear these cases. This is particularly so since the high court judge in Nulane, who came in for such criticism by the SCA, was an acting judge. The SCA's finding revives concerns that such a high profile case should rather have been presided over by a permanent, and, by implication, more experienced judge. The use of acting judges is a regular feature of the South African judicial system, and many of our high courts would be unable to deal with their vast caseloads without the support of acting judges. But the Nulane decision provides a salutary reminder that the allocation of judges to such cases is a highly consequential decision, and one that will no doubt be carefully considered as and when the case resumes. DM
Eyewitness News
22-06-2025
- Politics
- Eyewitness News
Investigating Directorate to submit fresh extradition application for Guptas
Cape TOWN - The Investigating Directorate Against Corruption (IDAC) says it will submit a fresh extradition application to the United Arab Emirates (UAE) for the Gupta brothers for additional State capture matters. This is despite the lack of success to date, in trying to get the brothers to face trial in South Africa in the Estina dairy farm and Nulane cases. On Wednesday, IDAC head Andrea Johnson told Parliament in the interest of justice and given the public interest in these matters, the National Prosecuting Authority (NPA) won't give up, even though diplomatic efforts to understand the shortcomings have been ignored. The failure of the State to successfully extradite Gupta brothers Atul and Rajesh has been a blight on the NPA's progress in prosecuting State capture matters. But Johnson told Parliament's Standing Committee on Public Accounts (SCOPA) that despite not knowing where it's gone wrong in previous attempts, it will once again be submitting an extradition application. 'We have now, however, taken a decision to submit new applications with additional matters.' She says 12 diplomatic notes (notes verbales) to the UAE government to understand why previous applications have failed, have been met with silence. 'How do you resubmit, when you've submitted a full set of papers, properly checked by themselves? So, it does put you in somewhat of a predicament. Do you now send these papers to be a so-called failed attempt again?' NPA head Shamila Batohi says by and large the authority is successful in extradition applications in other countries, but the UAE has proven particularly difficult.
The Citizen
18-06-2025
- Politics
- The Citizen
Batohi not worried about Omotoso's deportation as NPA plans to bring Gupta brothers back to SA
She expressed hope that the Nigerian pastor could be returned to South Africa if the NPA's appeal is successful. National Director of Public Prosecutions (NDPP) Shamila Batohi says the National Prosecuting Authority (NPA) is committed to bringing back Nigerian pastor Timothy Omotoso and the Gupta brothers to face justice. Batohi appeared before Parliament's Standing Committee on Public Accounts (Scopa) on Wednesday, where she faced tough questions about the NPA's performance in handling high-profile corruption and criminal cases. ALSO READ: 'There is no state capture in NPA': Ramaphosa to meet Batohi after infiltration claims The failure of the South African government to secure the extradition of Atul and Rajesh Gupta from the United Arab Emirates (UAE) continues to cast a shadow over the NPA's efforts to prosecute state capture cases. The NPA has also recently come under intense public scrutiny following the acquittal of Omotoso and his two co-accused in a rape trial that spanned eight years. Gupta brothers' extradition During the meeting, Investigating Directorate Against Corruption (IDAC) head Andrea Johnson rejected any suggestion that the South African government had mishandled previous efforts to bring the Gupta brothers back to the country to face several charges. She explained that the government has yet to receive a response from the UAE clarifying the reasons for the extradition request being denied. 'When the UAE decided not to extradite the Guptas, we wrote to them; 12 note verbales later, we still don't have any response from the UAE about why the extradition failed. Safe to say that they have asked us to resubmit,' Johnson said. READ MORE: A national embarrassment? 'Scorpions 2.0' bill pitched to save failing NPA 'How do you resubmit when you've submitted a full set of papers that have been properly checked, even by themselves?' 'It does put you in somewhat of a predicament – do you send these papers so that they are a so-called 'failed attempt' again?' Johnson confirmed that a new extradition request would be submitted for the Gupta brothers to the UAE. 'We've taken a decision to submit new applications with additional matters. The country also can't wait while the NPA has to follow legal processes.' 'So, having taken that into account, the public interest, and the interest of justice, we'll submit new applications not just on the Estina and Nulane matters. We're going to apply for extraditions in relation to other state capture matters.' Watch the meeting below: The Gupta brothers, who were arrested in Dubai in 2022, stand accused of playing a central role in state capture during former president Jacob Zuma's tenure. One of the key cases in which they are implicated is the Nulane Investment fraud case and Vrede Dairy Farm matter. Batohi explains NPA's appeal on Omotoso Later in the meeting, Batohi told the committee that while the NPA is appealing Omotoso's acquittal, the process could take years. She also downplayed public concern following Omotoso's deportation last month. The NDPP explained that if the televangelist had remained in South Africa as a free man, it could have further distressed his victims, who have already expressed their disappointment with the outcome of the trial. 'The fact that he has had to flee from South Africa means he has not been able to live his life the way that he would like to.' READ MORE: Batohi explains why NPA did not investigate prosecutors in 2021 Omotoso trial Batohi expressed hope that Omotoso could be returned to face justice if the appeal is successful. 'Nigeria is a country that we do have an extradition treaty with, and they are also multi-lateral treaties that we can draw on to hopefully bring him back when we do.' 'We have been successful with many extradition applications across the world. The UAE is the one that sticks out, and we have had challenges with that.' She added that the NPA would await the outcome of the appeal process. Batohi defended the institution, urging the public 'not to lose faith' in the country's prosecutorial system amid growing criticism of the NPA's handling of high-profile cases – the corruption case involving former Cabinet minister Zizi Kodwa.
eNCA
12-06-2025
- Business
- eNCA
NPA wins appeal in R25m Nulane fraud case
JOHANNESBURG - The National Prosecuting Authority has welcomed its successful appeal in the Nulane corruption case. An acting Judge discharged the accused in the R25-million fraud and money laundering trial in April 2023. The accused discharged in the section 174 application include Iqbal Sharma and his company, Nulane Investment. Several Free State officials and Ronica Ragavan, worked for Island-site Investment, owned by the Gupta family. This judgment paves the way for the Investigating Directorate Against Corruption to reinstate the case. Sharma, his brother-in-law, Dinesh Patel, and several others were accused of defrauding the Free State government. Nulane was appointed irregularly to conduct a feasibility study for a dairy farm NPA Welcomes the SCA Judgment Upholding IDAC's Appeal in Nulane Corruption Case — NPASouthAfrica (@NPA_Prosecutes) June 12, 2025
