Former Minister released on R10K bail

September 28, 2022 Page3 Reporter

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Former Mineral Resources Minister Mosebenzi Zwane has been released on a R10 000 bail after making a brief appearance at Bloemfontein Magistrates’ Court this morning.

Mr Zwane found himself in the dock together with his co-accused former Sahara Computers employee Ugeshni Govender and director of Gupta-owned company Islandsite Investments Ronica Ragavan for an alleged crime that occurred 10 years ago.

This is according NPA Spokesperson Sindisiwe Seboka who said the trio were arrested on charges pertaining to the R280 million Estina Dairy farm project that was supposed to benefit previously disadvantaged farmers.

“The arrests arise from the alleged looting of the Free state Department of Agriculture through a company called Estina. On 05 July 2012, Estina (Pty) (Ltd) entered into an agreement with the Free State Department of Agriculture to establish and implement a dairy farm project in Vrede, to benefit previously disadvantaged farmers and to uplift the people of the Vrede area.”

“In terms of the agreement, Estina was to provide a capital injection of R228 million. Paras Dairy (a company incorporated in India) was presented as Estina’s partner in the Vrede Dairy Project.”

“In the charge sheet the Investigating Directorate alleges that terms of the agreement between the Department of Agriculture and Estina the beneficiaries were to own 51% of the AGRIBEE (special purpose vehicle) entity and the remaining shares were to belong to Estina. The said agreement also contained a rent-free lease clause in favour of Estina for a period of 99 years.”

Seboka added that the agreement further stipulated that the department was to contribute R342 million including VAT over a period of three years. Estina received R280 million from July 2012 to April 2014.

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It was revealed that no proper procedures were followed in the project.

Zwane was the Free State agriculture MEC when the project took place. He was charged with corruption and fraud.

Magistrate Estelle de Lange granted Zwane and Govender bail and ordered them to be present when the matter returns to court on November 2.

The trio is facing charges of fraud, theft, corruption, money laundering.

The State did not oppose their release on bail as the interests of justice did not require their further detention while they await trial.