Witness Testifies to Gross Overpricing in Estina Dairy Farm Equipment Purchase
Source: The DairyNews
At the Pretoria Magistrates’ Court on Wednesday, allegations of gross overpricing in equipment imported for the Gupta-linked Estina dairy farm were brought to light. A witness revealed that the equipment, initially declared new and costing nearly R38 million, was in fact used and valued at less than R14 million.
In 2022, Kamal Vasram and Saliesh Indurjeeth, associates of the Gupta brothers and linked to the failed Estina dairy project, were arrested and released on bail of R10,000 each. They face charges of fraud, contravention of Section 54(1)(a) of the International Trade Administration Act, and Contravention of Regulation 22 of the Exchange Control Act.
An investigation by the South African Revenue Service (SARS) and the National Prosecuting Authority’s Investigating Directorate (ID) into the Estina Dairy Project uncovered that customs clearance documents were submitted to support a VAT refund claim. These documents declared a value of over R37.7 million for a “new” pasteurisation plant imported from India.
The investigation found that the plant had been invoiced to Estina by Gateway Limited in the UAE, a company suspected of being a conduit for laundering money and extracting funds from South Africa by the Guptas.
In court, witness Dawid Maree, head of agriculture information and marketing at FNB, testified that the value of the Estina plant was inflated and not market-related. He noted that the equipment was visibly used, contradicting the declared new status. Maree’s testimony indicated that the actual cost for new equipment would have been R14 million, not R37.7 million as declared.
The state argued that Vasram and Indurjeeth intentionally inflated the value to launder funds, submitting a bill of entry to SARS Electronic Data Interchange declaring the goods as new and valued at R37,718,634.
Maree’s assessment was supported by a gallery of 100 images showing clear signs of use, such as dents, scratches, and rust, which would not have appeared in the six months between importation and the photos being taken.
Historical Context and Future Proceedings
The Estina Dairy Project, now known as the Integrated Vrede Dairy Project, was established in 2012 on Krynaauwslust Farm near Vrede in the Free State. The R280 million public-private initiative aimed to empower black farmers but allegedly diverted funds intended for these beneficiaries to India.
During cross-examination, the defence criticised Maree’s testimony as opinion lacking evidence, noting that Maree had not visited the Estina farm for further assessments. A second witness, SARS employee Parbhookumarn Moodley, detailed the import process of the plant, noting discrepancies in the bill of lading.
The defence argued Moodley’s testimony was irrelevant to the trial's scope. The court adjourned and postponed the case to 11-14 November 2024, with the presiding magistrate expressing frustration over the case’s prolonged duration.
An investigation by the South African Revenue Service (SARS) and the National Prosecuting Authority’s Investigating Directorate (ID) into the Estina Dairy Project uncovered that customs clearance documents were submitted to support a VAT refund claim. These documents declared a value of over R37.7 million for a “new” pasteurisation plant imported from India.
The investigation found that the plant had been invoiced to Estina by Gateway Limited in the UAE, a company suspected of being a conduit for laundering money and extracting funds from South Africa by the Guptas.
In court, witness Dawid Maree, head of agriculture information and marketing at FNB, testified that the value of the Estina plant was inflated and not market-related. He noted that the equipment was visibly used, contradicting the declared new status. Maree’s testimony indicated that the actual cost for new equipment would have been R14 million, not R37.7 million as declared.
The state argued that Vasram and Indurjeeth intentionally inflated the value to launder funds, submitting a bill of entry to SARS Electronic Data Interchange declaring the goods as new and valued at R37,718,634.
Maree’s assessment was supported by a gallery of 100 images showing clear signs of use, such as dents, scratches, and rust, which would not have appeared in the six months between importation and the photos being taken.
Historical Context and Future Proceedings
The Estina Dairy Project, now known as the Integrated Vrede Dairy Project, was established in 2012 on Krynaauwslust Farm near Vrede in the Free State. The R280 million public-private initiative aimed to empower black farmers but allegedly diverted funds intended for these beneficiaries to India.
During cross-examination, the defence criticised Maree’s testimony as opinion lacking evidence, noting that Maree had not visited the Estina farm for further assessments. A second witness, SARS employee Parbhookumarn Moodley, detailed the import process of the plant, noting discrepancies in the bill of lading.
The defence argued Moodley’s testimony was irrelevant to the trial's scope. The court adjourned and postponed the case to 11-14 November 2024, with the presiding magistrate expressing frustration over the case’s prolonged duration.
23.09.2024
Carbon emissions in global milk production - the elephant in the room
I have been thinking to make this post yes/ no. I decided for yes and like to ask everyone to not "shoot the messenger". The chart shows an analysis of IFCN Dairy Research Network from the 2024 supporter conference in Poland.
