Gupta’s Vrede shenanigans
Inquiry hears about brother Tony’s involvement in dairy farm project.
Free State govt could not explain why R29m was removed from bank account.
Former Free State MEC for finance and former director-general in the office of the provincial premier, Elsabe Rockman, yesterday gave evidence at the Commission of Inquiry into State Capture relating to the failed Vrede dairy farm project, which was meant to be implemented in the province by Gupta-linked company Estina.
Rockman told the commission about a meeting she had with Tony Gupta in April 2013 in which the latter complained that the provincial government had not paid Estina an outstanding R84 million. At the time the company had been paid R30 million of the R114 million which was payable within 12 months.
Evidence leader at the commission, advocate Leah Gcabashe, asked Rockman whether she had a discussion with Gupta that the money was in fact not owed to Estina, because it was funding for implementing a government project and, furthermore, whether she had discussed with him that the 12-month period the money was payable in had not lapsed.
“We did not discuss it at that level that you are referring to,” Rockman responded.
Rockman told the commission that Free State treasury did not know what discussions and agreements Estina had with the provincial department of agriculture, like for the implementation of the Vrede dairy project.
“Our [role] was more cash management and oversight,” Rockman said, explaining that in terms of progress on the project, all provincial treasury knew was based on information provided by the provincial department of agriculture.
Rockman also told the commission about a meeting she had with Gupta in early 2014 following media reports that cows were dying on the dairy farm.
Following the media reports, concerns over this were raised with the former head of the Free State department of agriculture, Peter Thabethe, said Rockman.
During his testimony, Thabethe was unable to fully explain why he allowed R29 million to be removed from an account in the Estina dairy farm project before a full feasibility study could be completed.
Thabethe said the department was told the money was reserved for equipment that was yet to be manufactured for the project.
The controversial project was meant to see 100 black emerging farmers receive five cows each as part of an empowerment scheme.
Gifted to Estina in 2013 under a free 99-year lease by the provincial department of agriculture, the farm was one of the most controversial transactions between the Guptas and a government entity.
Gcabashe said the commission was in possession of records that suggested Rockman had attended “roughly” 20 meetings with Gupta. She confirmed this, explaining that two or three of these meetings were cancelled at the last minute.
Rockman told the commission that during her time as director-general, former Free State premier Ace Magashule would have known about her meetings relating to The New Age newspaper.
Rockman also detailed the first time she met with Gupta, and how they discussed the subscription of The New Age.
She said the provincial government agreed to subscribe to The New Age and bought 4 000 newspapers a day.
“The subscription was to give support to The New Age as a new entrant to the market. It had a new voice and no one else [in the province] was covering the niche,” she said.
However, Deputy Chief Justice Raymond Zondo asked why advertising in the newspaper was not enough support.
Responding, Rockman said advertising in the paper would have been “limited support”. –