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NPA plans to reinstate struck-off Estina Dairy case, as State Capture questions persist

NPA plans to reinstate struck-off Estina Dairy case, as State Capture questions persist
Estina Dairy farm project near Vrede on 12 July 2017. (Photo: Gallo Images / Rapport / Deon Raath)
Vincent Cruywagen
By Vincent Cruywagen
8 Aug 2024
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The NPA’s Investigative Directorate’s efforts to prosecute the R280m Estina Dairy corruption scandal was thwarted when the case was struck off the roll in the Free State High Court on Wednesday. It is unclear when the NPA will reinstate the case.

On Wednesday, 7 August 2024, the Free State High Court in Bloemfontein struck the R280-million Estina Dairy corruption scandal case against former mineral resources minister Mosebenzi Zwane and others off the roll.

The other accused in the case include former Free State agriculture head of department Peter Thabete, the department’s former CFO Seipati Dhlamini, former chief director of district services Takisi Masiteng, Gupta associates Ugeshin Govender and Ronica Ravagan, former Estina director Kamal Vasram, and eight companies.

They were charged with fraud, corruption, money laundering and contravening the Public Finance Management Act.

The matter was scheduled for trial on Monday, 5 August. However, the National Prosecuting Authority’s (NPA) wings were clipped after the defence team applied to have the matter struck off the roll due to unnecessary delays. 

The defence application was filed in accordance with Section 324(a) of the Criminal Procedure Act. The delay in receiving a five-terabyte hard drive, which included the Gupta Leaks, to access information for trial preparation, was central to the defence team’s arguments.

After hearing arguments, Judge Celeste Reinders determined that there were unreasonable delays that prevented the case from proceeding, and she was satisfied that the trial could not proceed under these conditions.

Cows at the Estina Dairy project during then-DA leader Mmusi Maimane’s visit on 12 July, 2017 in Vrede. The farm, which was a joint private-public project between the Free State Department of Agriculture and Gupta-controlled company Estina, is in the midst of controversy after allegations of corruption and money laundering by the Gupta family emerged. (Photo by Gallo Images / Rapport / Deon Raath)



The decision is disappointing news for many communities that have waited patiently for this matter to be heard in court. In May 2024, Daily Maverick’s Ferial Haffajee reported that the intended beneficiaries of the Estina Dairy project continue to struggle years after the scandal came to light.

Read more: Guptas’ R280m dairy heist victims get R1,300 gift card and 5kg meat hamper

The Estina Dairy project started in 2012 and was conceptualised by Mosebenzi Zwane, who was Free State agriculture MEC at the time, and Thabethe. Former Free State premier Ace Magashule and Zwane were not only directly implicated in the Vrede project, which paid the Gupta family’s company Estina more than R280-million for nothing in return, but they also ignored National Treasury recommendations on flagged procurement irregularities, according to evidence.

The public funds, which were meant to benefit disadvantaged black farmers in the province, were allegedly looted for the ultimate benefit of the Guptas. 

In November 2022, the matter was transferred to the Free State High Court in Bloemfontein. Zwane was arrested in 2022, after handing himself over to the police, before appearing in Bloemfontein Magistrate’s Court along with Govender and Ragavan.

In the State Capture Commission’s final report, Chief Justice Raymond Zondo singled out Zwane, Thabethe and Magashule as the primary architects behind the looting of the provincial department of agriculture through Estina.

Estina Dairy farm project on 12 July, 2017 in Vrede. (Photo: Gallo Images / Rapport / Deon Raath)


NPA plans to reinstate case


According to NPA spokesperson Mthunzi Mhaga, the NPA’s Investigating Directorate will reinstate the Estina Dairy farm case as soon as possible. 

“Since the trial date of 5 August 2024, the State has been ready to proceed, with witnesses ready to testify in court. The ID [investigating directorate] team has been guided by external and experienced Senior Counsel, who have worked diligently on all aspects of the Gupta evidence and relevant disclosures,” he said.

He confirmed the court’s decision follows an application by the defence for the matter to be struck off the roll, citing an inability to access the electronic version of the hard copies of the Gupta Leaks.

However, he added that as early as 2023, as part of the disclosure process, the State had provided the defence with hard copies of the Gupta leaked emails.

Mhaga told SABCS News that the NPA obtained an electronic version of the  Gupta Leaks in the Netherlands in February 2024. Between February and 15 June 2024, the NPA created a digital platform where the defence could access this information.

“On 15 June 2024, the defence was provided with the electronic versions of the same hard copies disclosed in early 2023. The State also made its own technical expert available to assist the defence in accessing the digital platform, should they experience any challenges,” he explains.

Mhaga further stated that the NPA will request the registrar to urgently transcribe the judgment, which the NPA will then interrogate. They can then file an application for reinstatement and show the court that all the necessary documents have been handed to the defence.

“The NPA will reflect further on Wednesday’s decision; however, the NPA remains undeterred in the pursuit of this matter and will take all necessary steps to reinstate it,” he added.

gupta estina dairy equipment Estina Dairy farm project near Vrede on 12 July 2017. (Photo: Gallo Images / Rapport / Deon Raath)


‘Significant setback’ in justice quest


Reacting to the decision to strike the case off the roll, DA Free State leader Roy Jankielsohn said “this decision marks a significant setback in the quest for justice for both the people of the Free State and the beneficiaries who are affected by corruption and state capture. Incidents like this contribute to the public’s loss of confidence in the criminal justice system’s ability to fight the scourge of corruption and other crimes”.

ActionSA Free State leader Patricia Kopane said: “ActionSA continues to express concern about the evident lack of successful state capture prosecutions and convictions, despite the final Zondo Commission Reports, which cost taxpayers over a billion rand to produce, being handed over to President Cyril Ramaphosa more than two years ago. This raises questions about whether the NPA, under its current leadership, is capable of delivering the justice demanded by South Africans.

“This shameful ruling is a damning indictment of a justice system that appears to be in a stagnant rut, where South Africans are no closer to seeing accountability for the treasonous assault on our democracy perpetrated by a corrupt syndicate.” DM

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