The Bloemfontein High Court has dismissed charges against the accused in the R24.9-million Nulane fraud and money-laundering case.
This after they submitted section 174 applications for a discharge, arguing that the state has no case against them.
Section 174 states that an accused may be discharged if, at the close of the case for the prosecution at any trial, the court is of the opinion that there is no evidence that the accused committed the offence referred to in the charge, or any offence of which he may be convicted on the charge.
The five accused who applied for discharge are Gupta family associate and businessman Iqbal Sharma, his brother-in-law and a representative of Nulane, Dinesh Patel, former head of Free State department of rural development Peter Thabethe, former provincial agriculture chief financial officer Seipati Dhlamini, and Gupta-owned Islandsite Investments director Ronica Ragavan.
The companies indicted are Nulane Investments and Islandsite Investment.
The high-profile case is linked to the R25-million tender awarded to Nulane Investments to conduct a feasibility study.
It is alleged that between 2011 and 2012, millions of rands were paid to Nulane Investment to conduct a feasibility study for the Free State’s Mohoma Mobung project in relation to the Estina dairy farm scandal.
The state alleges that at the time, Nulane Investment had no employees on its books, and instead subcontracted Deloitte to do the feasibility study and produce a report.
The Free State government paid R24.9-million to Nulane Investment for the report, which was later compiled by Deloitte. However, Deloitte’s fee for the work done on behalf of Nulane Investment was only R1.5-million.
Previously, Sharma, Patel, Ragavan, and Dhlamini pleaded not guilty and offered no explanation for their pleas.
Limakatso Moorosi, former Free State department of agriculture head who also disputed the charges, argued through her legal representative that the Mohoma Mobung project was legitimate and approved by government, saying there was even a budget for it.
During the proceedings on Friday, acting judge Nompumelelo Gusha ruled that the charges against the accused are dismissed, stating that the state failed to prove any common purpose in relation to the alleged Nulane fraud.
National Prosecuting Authority’s investigating directorate, advocate Andrea Johnson, said the state is weighing its options on whether to appeal the ruling.
“We will be reflecting on the judgment with a view to determine legal avenues to explore. The outcome of this case has no bearing on our ability to prosecute other state capture cases,” said Johnson.
“We remain resolute in our commitment and ability to vigorously prosecute those responsible for state capture and corruption.”
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