They are accused of R37,7 million in tax fraud, to which they have pleaded not guilty.

According to the National Prosecution Authority (NPA) Investigating Directorate (ID) spokesperson, Sindisiwe Seboka, the court heard evidence from the state’s first witness, Piet Swart, an investigator with the SA Revenue Service (Sars).

"He is expected to continue his testimony on Tuesday (28/3) as the trial is expected to conclude on 30 March. Swart testified about the customs clearance submission, which relates to nine shipping containers that carried dairy equipment, purportedly from Gateway Limited in the United Arab Emirates."

A pasteurisation plant, imported from India, was invoiced to Estina by Gateway, an alleged Gupta front company in the United Arab Emirates (UAE), reports TimesLive.

The NPA says investigations revealed customs clearance documents in support of a VAT refund claim were submitted.

“The customs declaration was scrutinised, whereupon the declared value of more than R37,7m for a ‘new’ pasteurisation plant was suspected to be excessively high.”

Vasram and Indurjeeth face charges of fraud, contravention of the International Trade Administration Act and contravention of the Exchange Control Act, arising from a joint investigation by Sars and the ID. 

Currently, there are two separate cases in the Free State High Court linked to the failed Estina project: the original Estina case involving ANC Member of Parliament (MP) Mosebenzi Zwane, former MEC for Agriculture in the Free State and a case about a feasibility study about the project.

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The feasibility study involves a company of the Gupta lieutenant, Iqbal Sharma. It’s also alleged that in 2011, the Free State Agriculture Department paid almost R25 million to Nulane Investments, which was owned by former Transnet board member Sharma, for the Vrede feasibility study.

Nulane Investments, represented by Sharma’s brother-in-law Dinesh Patel, then negotiated and subcontracted the feasibility study to forensic auditing firm Deloitte for R1,5 million.

ALSO READ: Free State 'often looted by Guptas'

They went ahead and subcontracted the work - already carried out by Deloitte - to Gateway Limited and paid them R19 million. The state alleges the funds were thereafter laundered into varied accounts, including that of Islandsite Investments. It is because of the money laundering that occurred that the Gupta family has now been linked to the case.

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