On Thursday, the prosecution team called a retired and experienced former Absa employee, Linda Channing, with more than 40 years of experience, as well as Norman Percival Smit, also with more than 40 years of experience at the bank. Channing took to the stand and explained how the banking management system works and how one of the Gupta brothers Atul was the super user of the banking system for Sahara Computers. 

Later on, Smit also testified how money allegedly flowed from one account to another during 2011 and 2012. Millions of rands were being transferred from the so-called Gupta lieutenant Iqbal Sharma to Islandsite Investments. From there it would then be sent to Pragat Investments. Millions of rands were sent from the aforementioned companies again and again.

Islandsite Investments is represented by the accused Ronica Rogavan.

The state contends that these millions were sent from one focal point by a system operator, who in this case was Atul. The case is based on allegations that R24.9 million was paid to Nulane Investments to conduct a feasibility study for the Free State’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 subcontracted Deloitte to produce the report. 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.

The National Prosecuting Authority (NPA) contends the following:

“In that during the period between 8 November 2011 and 6 July 2012 at or near Bloemfontein in the regional division of the Free State and or at or near Johannesburg in the regional division of Gauteng, the accused, unlawfully, colluded and conspired with one another and with others, with a common purpose to launder the proceeds of unlawful activities, whilst they knew or ought to have reasonably known that certain property and money, amounting to R19 070 934, was derived by Accused 5 (Nulane Investments) from the Free State Department of Agriculture and Rural Development as a portion of a total payment of R 24 984 240.

The said property, to the amount of R19 070 934, was transferred from Accused 5’s Bank of Baroda account to the offshore Standard Chartered bank account of Gateway Limited, under the pretext that the said property was payment by Accused 5 to Gateway Limited for services rendered in terms of a contract concluded between them on 2 December 2011.”

However, Senior Council (SC) Adv. Michael Helens raised concerns about the missing documents from evidence given in court by Smit. SC Helens pointed out that transactions from June 2009 were missing. Transactions from the month of May 2010 was also missing.

Judge Nompumelelo Gusha postponed the matter to Monday after state prosecutor, Jacyntha Witbooi, asked for a postponement. The plea for the postponement was taken lightly by the defence team with Adv. Daniel Mantsha and Adv. Oldwage, among others, who raised concerns about what the postponement would do to the accused's financial situations. Judge Gusha, however, maintained it was fair to grant the postponement.

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

OFM News