Staff Reporter
Businesswoman Ronica Ragavan has been formally charged in the R25 million Nulane Investments 204 (Pty) Ltd tender fraud case involving the Free State Department of Agriculture.
Ragavan, a well-known Gupta associate, became the eighth accused in the matter when she made her initial appearance on Friday at the Bloemfontein Magistrates Court.
Investigating Directorate (ID) spokesperson Sindisiwe Seboka says Ragavan is facing fraud and money laundering charges.
The charges emanate from the time she was a director at Islandsite Investments 180 (Pty) Ltd, a company owned by the Gupta family.
“Ragavan faces two counts of fraud and money laundering for her role within the Gupta enterprise,” said Seboka in a statement.
At the last sitting on September 28, Ragavan failed to appear in her representative capacity for Islandsite and a warrant for her arrest was issued, yet stayed.
It has since been cancelled following her appearance.
The matter relates to procurement fraud involving R24.9 million paid between November 2011 and April 2012 by the provincial agriculture department to Nulane.
From there, the funds were diverted to Islandsite.
“The R24.9 million was paid to Nulane purportedly to conduct a feasibility study for the Free State province’s flagship Mohoma Mobung project, on the basis that Nulane had unique skills to perform the work,” Seboka explained.
The company was required to provide a report to the department within seven months.
Nulane, however, subcontracted the work to Deloitte Consulting (Pty) Ltd for R1.5 million.
It’s suspected Nulane further subcontracted UAE-based Gateway Limited to do the work already completed by Deloitte and paid them over R19 million.
Nulane allegedly transferred millions of rands to several Gupta companies which are now under the radar of South African authorities, including Pragat Investments (Pty) Ltd.
The other accused in the matter are Nulane Investments owner Iqbal Sharma, former head of rural development in the provincial agriculture department, Mbana Peter Thabethe, former head of department Limakatso Moorosi, the department’s former chief financial officer, Seipati Dhlamini, and former Nulane Investments employee Dinesh Patel.
Sharma is also a former Transnet board member.
They face charges of fraud and money laundering.
The former government officials are also charged with contravention of the Public Finance Management Act.
The group is charged together with two companies, Nulane Investments and Islandsite.
Patel was not present in court citing medical reasons.
His legal team submitted a sick note and a warrant for his arrest was issued but will not be executed until the next sitting of the case on December 6.
Friday’s postponement of the matter is to allow the state to obtain a provisional date for trial, finalise the indictment as well as other preliminary matters.