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The trial – involving eight suspects, where three former Free State Agriculture Department officials and service providers stand accused of varying charges including fraud, corruption and money laundering – entered its 6th day.

The current director of the department's finance section, Sekotoane Moalosi, was the first official in the stand this morning, Monday 31 January 2023. Moalosi gave a detailed view on what had transpired during payment processes to the so-called Gutpa Lieutenant Iqbal Sharma's company, Nulane investments.

Nulane is alleged to have been irregularly paid R25 million by the department in 2011 for the Mohuma Mobung project.

The state has so far called 6 witnesses to testify in the planned three-month trial.

Some of the accused include the former Head of the Department (HOD), Peter Mbana Thabethe, Limakatso Moorosi, Seipati Dhlamini, and Iqbal Sharma.

Moalosi explained how documents needed to correlate with each other before the payment could be done by the department, including the supply chain management (SCM) unit.

He also told the court that he only signed and authorised one payment into the contract between the department and Nulane Investments.

Two more witnesses were then later called to take the stand. The second witness after Moalosi was Selloane Motsumi,  who started as an intern at the department in 2008 and was appointed in June 2011. This was the year when most payments were affected by the company in question. She told the court that she also worked at the finance department and had also signed some documents before they were processed and finalised by other units or sections.

Motsumi confirmed some of the documents which Moalosi had spoken about in court. She was later excused after her short testimony in court. She was then followed by Kenosi Thubisi, from Supply Chain Management. A nervous-looking Thubisi told the court that at one stage he was asked by a gentleman known as Ntate Mofokeng to process and sign particular forms pertaining to Nulane. He says he made sure it was known that it was not his competency and indicated that the job was someone else's. He says he was asked to do so on the day a person or another official relevant to the job was absent. Thubisi admitted to completing some of the forms. Whilst giving testimony, the court had to adjourn for an early lunch to give Thubisi a moment to compose himself.

The state is set to call more witnesses.

The case is based on allegations that R24.9 million was paid to Nulane Investments 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. The state alleged that Nulane Investments, however, had no employees on its books and in fact subcontracted Deloitte to produce the report, for which Deloitte was paid R1.5 million. It’s alleged that the only change made to the Deloitte report was to identify Paras Dairy as a suitable implementing partner for the development of a milk processing plant in Vrede.

Free State government officials and service providers stand accused of looting and stealing millions from the Free State Agriculture Department. It's alleged that officials – including Peter Mbana Thabethe, Seipati Dhlamini, and Limakatso Moorosi – allowed an illegal upfront payment of R12 million with no proper documents.

It's also alleged that the department later paid the rest of the money, amounting to R24.9 million, for a feasibility study.

The companies indicted are Nulane Investments 204 Pty Ltd. and Islandsite Investment One Hundred and Eighty Pty Ltd.

The trial is expected to be concluded on 3 March 2023.

OFM News