Moves to impound Guptas’ R250m
LUXURY cars, two aircraft, a helicopter, farms and bank accounts are some of the valuables worth more than R250 million the Asset Forfeiture Unit (AFU) plans to impound from the controversial Gupta family.
The AFU yesterday descended on the embattled Guptas’ luxurious Saxonwold home, armed with a restraint order to seize the family’s multimillion-rand assets.
The seizure relates to the case of fraud, theft and money laundering that allegedly occurred at the Vrede Dairy Project in the Free State, which the Gupta brothers are alleged to have looted using their government connections.
AFU, police and officials from Sars raided the Gupta compound to identify items to be seized.
These assets belong to some of their entities such as Oakbay Investments and Sahara Computers, and were valued at R250 202 652.
The Guptas could forfeit these pending the finalisation of the case.
“Upon conviction, the AFU will apply for a confiscation order for the recovery of the said amount and/or any related amounts,” said Luvuyo Mfaku, spokesperson for the National Prosecuting Authority (NPA).
Moves to attach the Gupta properties got into full swing on Friday when the family’s private jet, valued at $60.5m, (R731m), which is at the centre of a legal dispute, was returned to Lanseria Airport from Dubai.
The Cape Times’ sister publication, The Star, has learnt that some of the millions siphoned from the
Dairy Farm project could have been used by other foreign nationals linked to the Guptas to set up private businesses and to buy properties in and around Vrede.
Chandrama Prasad, an Indian national hired by the Guptas to manage the project in 2013, is said to have colluded with Shahid Muhammad to set up at least three businesses and several properties in Vrede.
All these entities are registered to Muhammad’s South African wife Nelisiwe Sani-Muhammad. Muhammad is a Pakistani national and businessman in the area.
Sani-Muhammad is listed as the director of the three companies but she owns no shares and has contributed no capital to start any of them, according to a company search by the Cape Times’ sister newspaper The Star.
The businesses include a bakery and vegetable shop. She also has 20 properties in her name.
An associate who worked on the plant, a small businessman employed on the farm as a part-time electrician, business adviser, and middleman to Prasad and Muhammad said money, equipment and products from the project were passed down to private businesses mainly run by Muhammad.
“This guy (Muhammad) would sometimes bring his bakkie and truck to the farm to fill them with the diesel meant for the project. He also pocketed more than R400 000 in fake invoices he submitted to the project. I know these things because I was there helping them buy some of the things they wanted and I would sometimes give them business advice,” said the plant worker who feared being named.
He added that Prasad also sold milk earmarked for contracted companies to the locals.
The Hawks interviewed the plant worker a few weeks ago following their arrest of eight individuals in February for the alleged theft from the R220m government-sponsored project. The suspects included Estina director Kamal Vasram who was granted R100 000 bail by the Bloemfontein Regional Court, along with fellow accused. They are charged with 12 counts of fraud and theft, and expected back in court in August.
Hawks spokesperson Brigadier Hangwani Mulaudzi said the worker’s claims will be tested. “There is a second phase of the investigation that is continuing but I can’t divulge much. We will look at some of these allegations by the gentleman if they don’t already form part of our investigation.”
Muhammad dismissed all the allegations against him, claiming that he started his businesses in 2005, long before the dairy farm existed. “I know Prasad very well but I never worked with him. I know nothing about the plant and I never benefited from it,” he said.
Asked why all his businesses were in his wife’s name, Muhammad said it was an agreement between them as they have been in business together for many years.
Free State Agriculture Department had entered into partnership with Estina, a private company, in 2012 with the purpose of helping about 80 emerging dairy farmers in and around Vrede. They would have a 51% stake in the project, while Estina would keep the remaining 49%.
The department poured more than R200m into the venture without following proper procedures, according to the report issued by the Public Protector’s office in February.
It was also alleged that R10m of the money was deposited into Atul Gupta’s personal bank account and a further R30m funded the infamous Gupta wedding in Sun City in 2013.