Court order victory for NPA in search for Estina millions
JUST days after the Guptas won a major legal battle against the state in the Estina Dairy Project case‚ the National Prosecuting Authority has confirmed that it has won a court order to go after R169million linked to the alleged scam – in Dubai.
The NPA’s Luvuyo Mfaku said that curator Eugene Nel was appointed to trace this money‚ which was allegedly paid by Estina to a company called Gateway Limited.
The state successfully applied for this money to be frozen on the basis that it is the proceeds of unlawful activities.
“The curator has confirmed that Gateway is‚ in fact‚ a shelf company‚” Mfaku said.
“So the next step is for him [Nel] to be appropriately recognised by the Dubai authorities‚ so that he can trace where the money was moved and potentially seize assets in a bid to recover it. “That process is under way.” While investigative unit amaBhugane has described Gateway as little more than a Gupta front that is administered by a “Gupta subordinate”‚ the family has denied any links to the company.
Gateway is registered in Ras al-Khaima‚ one of seven emirates making up the United Arab Emirates and a highly secretive offshore company jurisdiction. The NPA has described the Estina Dairy Project‚ which was set up for the supposed benefit of poor black farmers‚ as a massive scam, where money which should have been spent on empowerment was instead “siphoned out of Estina to several related entities and individuals”.
Investigators further claim that Kamal Vasram‚ Estina’s sole director‚ had no experience in agriculture and previously worked for Gupta-owned Sahara Computers as a retail sales manager.
Despite this, the state has been hit with two devastating losses in its fight to freeze Gupta assets it claims are the proceeds of the Estina crimes‚ or at least the benefits of those crimes.
Bloemfontein High Court Judge Phillip Loubser found that there was currently not a reasonable basis to believe that Gupta family members‚ associates and businesses would be convicted on money-laundering and fraud linked to the project.
And‚ as such‚ there was not a reasonable basis for R250-million in the family’s assets to be frozen pending potential conviction.
Earlier this year‚ its first successful attempt to freeze R220million in assets linked to the Estina project as the proceeds of crime‚ or the instrumentality of an offence‚ was reversed by high court Judge Fouche Jordaan.