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IOL News
7 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has had her secondment as the acting chief financial officer of the troubled Maluti-a-Phofung Local Municipality withdrawn as she is facing fraud charges relating to a R25 million contract awarded to the Gupta-linked Nulane Investments by the province's Agriculture Department.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Gupta-linked Nulane Investments as Maluti-a-Phofung Local Municipality acting chief financial officer (CFO) has been withdrawn.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 Free State Cogta and Human Settlements Department spokesperson, Zimasa Mbewu, said Mokoena has withdrawn the secondment of Dhlamini, and Thuso Ronald Marumo, formerly CFO of the Moqhaka Local Municipality in Kroonstad, has been seconded to be Maluti-A-Phofung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.
Mail & Guardian
13-06-2025
- Mail & Guardian
National Prosecuting Authority preparing to reinstate charges against Nulane accused
State capture: Ajay Gupta, Atul and Rajesh. (Adrian de Kock/Netwerk24) The 'We are tirelessly working towards that,' said NPA spokesperson Mthunzi Mhaga . On Thursday, the NPA prevailed in the supreme court of appeal (SCA), which found that Judge It said what transpired in the high court could only be summed up as a 'failure of justice'. The SCA ruling came almost two years after Gusha That decision meant that none of them had to take the stand to answer the case put forth by the state. Gusha found that the prosecution had 'regrettably failed to pass even the barest of thresholds' in proving that the accused colluded to defraud the Free State government and ensure some R24 million was funnelled to a United Arab Emirates (UAE) Standard Chartered Bank account linked to the Gupta family. Gupta associate Iqbal Sharma was arrested in 2021, nearly a decade after Free State officials deviated from public finance rules to awarded a contract worth R24.9 million for a feasibility study to his newly-founded Nulane Investments. It pinpointed Paras, an Indian firm linked to the Guptas, as the preferred entity to a dairy project in Vrede in the Free State. This would later become the Estina dairy farm scam in which more than R280 million allegedly flowed to the Gupta family. But Gusha, an acting judge, found that the prosecution was unable to prove that provincial officials broke the law when they gave the contract to Nulane. It meant that the case collapsed at the first hurdle, because without proof that the money was stolen, the state could not sustain the charge of money-laundering in relation to the rapid-fire transfers that followed to companies in the Gupta stable. The SCA agreed with the state that Gusha made a litany of errors in law and fact, resulting in a failure of justice. She had been obliged to consider the totality of evidence, and had failed to do so. 'The inference is inescapable — and the judgment itself shows — that the judge had closed her mind to the evidence adduced by the state. 'This is unfortunate, particularly in a case such as this, where it was prima facie established that scarce public funds were unlawfully extracted from the department and channelled to the UAE, by fraud and the misuse of power.' Hence, the appellate court said, the acquittal of the accused was unfair to the prosecution. The prosecution had relied on the doctrine of common purpose to prove that all accused were part of a conspiracy to defraud the government, as were Atul and Rajesh Gupta. It had planned to add them to the list of accused if they were surrendered to South Africa. The SCA said there was evidence that three Free State officials worked together to ensure Nulane was appointed and paid and, further, that fraud and money-laudering was committed with the cooperation of the rest of the accused, among them Ronica Ragavan, the director of the Gupta family's Islandsite Investment. That was one of the companies in the family's business empire through which the state allegedly the money extracted from the Free State was laundered with 'bewildering rapidity'. There was a real likelihood, the SCA said, that the accused would have incriminated each other, had they been put on the stand. 'The high court misapplied s174 of the CPA [Criminal Prosecution Act]: a court should not discharge an accused who might be incriminated by a co-accused. This was unfair to the state,' the court said. 'The trial in the high court can be summed up in a single sentence: This was a failure of justice.' It added that regrettably this undermined public confidence in the criminal justice system. The SCA ruling provided some comfort for the NPA a week after the Bloemfontein high court ruled that it did not have jurisdiction to try Ace Magashule's former assistant, Moroadi Cholota, for her role in the R225 million Free State asbestos scam case. The court found that her extradition from the United States was unlawful as the NPA had failed to challenge an SCA ruling that only the minister of justice, and not the prosecuting authority, had the power to apply for extradition, in due time. The NPA is seeking to overturn this ruling as well.
eNCA
12-06-2025
- Politics
- eNCA
SCA to rule in Nulane Investments case
BLOEMFONTEIN - The Supreme Court of Appeal is set to rule on the NPA's bid to overturn the acquittal of Nulane Investments fraud accused. The suspects were arrested for fraud and money laundering amounting to R25-million. The State is pushing for a retrial of Gupta associates and senior Free State officials. The first State Capture trial ended in the accused walking free. At the heart of the matter are government payments to Nulane for a feasibility study.
