Vrede Dairy Project: R24.9m feasibility study was not initially budgeted for, former head of Free State Treasury testifies

Court proceedings during the court appearance of Limakatso Moorosi, Seipati Dhlamini, Iqbal Sharma, Ronica Ragavan and Dinesh Patel at the Bloemfontein High Court on 23 January 2023 in Bloemfontein. (Photo: Gallo Images / Volksblad / Mlungisi Louw)

By Cathy Dlodlo

31 Jan 2023

A top Free State government official testified on Tuesday in the first State Capture trial — involving a multimillion-rand feasibility study for the controversial Gupta-linked Vrede Dairy Project.

Godfrey Mahlatsi, the former head of the Free State Treasury, told the Bloemfontein High Court on Tuesday that the Vrede Dairy Project was not registered as a public-private partnership.

At the centre of the trial is a multimillion-rand feasibility study which was awarded to Nulane Investments, an accused in the case. The State alleges the company was paid R24.9-million for the study, which led to the Vrede Dairy Project.

vrede dairy project Accused Iqbal Sharma at the Bloemfontein High Court on 23 January 2023. (Photo: Gallo Images / Volksblad / Mlungisi Louw)

Mahlatsi, who is now the head of the Free State Department of Health, testified that the provincial Department of Agriculture and Rural Development did not initially budget for the feasibility study. During October of the 2011/2012 financial year, the project was, however, allocated R30-million during the adjustment budget.

Mahlatsi took the stand after the court temporarily released an official of the Department of Agriculture and Rural Development from the witness stand.

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Kenosi Thubisi testified on Monday about his signature on a document for the payment of the feasibility study. During cross-examination, he was grilled about the content of his affidavit. Kenny Oldwadge, the legal representative of accused Dinesh Patel, put it to Thubisi that his affidavit was a copy-and-paste product of the two policemen who were typing it and that it contained untrue statements.

vrede dairy project Court proceedings during the appearance of Limakatso Moorosi, Seipati Dhlamini, Iqbal Sharma, Ronica Ragavan and Dinesh Patel at the Bloemfontein High Court on 23 January 2023 in Bloemfontein. (Photo: Gallo Images / Volksblad / Mlungisi Louw)

Acting Judge Nompumelelo Gusha warned Thubisi to return to the witness stand on Wednesday morning.

The eight accused include two former Free State Department of Agricultural and Rural Development heads of department, Peter Thabethe and Limakatso Moorosi; Iqbal Sharma, Ronica Ragavan and a second company, Islandsite Investments One Hundred And Eighty, of which Ragavan was a director.

They are facing charges including fraud and contravening section 86 (1) of the Public Finance Management Act.

Three government officials from the department testified about a motivation that was written to deviate from procurement procedures for the appointment of Nulane Investments. According to the charge sheet, the company did not have the capacity to provide a feasibility study and subcontracted Deloitte to deliver the service.

The case continues. DM

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