Staff Reporter
The National Prosecuting Authority (NPA) is pursuing the extradition of the Gupta brothers and their wives to answer to fraud and money laundering charges relating to a R24-million feasibility study contract awarded by the Free State government.
The wealthy Indian-born family – which owns a business empire spanning computer equipment, media and mining – left South Africa for the United Arab Emirates in 2016 under increasing scrutiny as a result of their close ties to Jacob Zuma before and during his presidency.
Head of the NPA’s Investigating Directorate, Advocate Hermione Cronje, said the authority was requesting Interpol to assist with the arrest of Atul Gupta and his wife, Chetali, and Rajesh Gupta and his wife, Arti.
Warrants have also been issued for the arrest of Indian nationals Ankit Jain, a former signatory to Nulane Investments (Pty) Ltd’s account with the Bank of Baroda, Wone Management (Pty) Ltd director Ravindra Nath and Pragat Investments (Pty) Ltd directors Ramesh Bhat and Jagdish Parekh.
Interpol is an international organisation that facilitates worldwide police cooperation and crime control.
The Guptas and their associates are wanted in connection with fraud and money laundering charges that arose after the Free State Department of Agriculture and Rural Development awarded a R24-million contract to Nulani Investment 204 (Pty) Ltd to conduct a feasibility study for the province’s flagship Mohoma Mobung project, which included the much-publicised Vrede dairy initiative.
Their co-accused, three former senior agriculture department officials, appeared in the Bloemfontein Magistrates Court this Thursday.
The trio – former rural development head Peter Thabethe, former agriculture head Limakatso Moorosi and former agriculture chief financial officer Seipati Dhlamini – appeared alongside Iqbal Sharma, a former Transnet board member and business partner to Gupta associate Salim Essa.
The four were arrested on Wednesday.
The state alleges the four colluded to divert funds earmarked for rural development in the Free State.
After Thabethe, Moorosi and Dhlamini allegedly awarded the R24-million feasibility study deal to Sharma’s company, Nulani Investments 204 (Pty) Ltd, from there the funds were diverted to Islandsite Investments 180 (Pty) Ltd, a company owned and controlled by the Gupta family.
Instead of undertaking the feasibility study, Nulani Investments – which had no employees on its books – is said to have subcontracted Deloitte Ltd to do the job and produce a report for a fee of R1.5 million.
“The modus operandi used in this case appears to have been replicated in other government departments and projects,” Investigating Directorate spokesperson Sindisiwe Seboka said in a statement released by the NPA.
“It is therefore critical that the evidence gathered in this matter is presented to court and a verdict obtained expeditiously.
“It is for this reason that prosecutors have decided to proceed separately against the accused currently in the country and those abroad, as the process of arrest and extradition may unduly delay the trial.”
After their appearance in court today, Moorosi and Dhlamini have been released on R10 000 bail each.
The bail application for Thabethe and Sharma will take place on Monday.
The fifth suspect in the matter, Iqbal Sharma’s brother-in-law and a representative of Nulane Investments, Dinesh Patel, will formally appear on June 15 for health reasons.
Apart from the Guptas and their associates, they are also charged together with four companies, Nulane Investments, Wone Management, Pragat Investments and Islandsite Investments.