Former mineral resources minister and ANC MP Mosebenzi Zwane maintains that he is innocent after he was granted R10 000 bail.
“I pleaded not guilty. I’m happy finally, this matter has seen its light of the day in court where I can be given a fair chance to say whatever I want to say. This matter has tainted my name for the past 10 years outside the court of laws, anybody saying whatever they wish to say about this matter. I think this is the right platform for people to come to say whatever they want to say. I’m ready. I’m going to co-operate with the court,” Zwane said.
Zwane and two co-accused, former (Gupta-owned) Sahara employee Ugeshni Govender and Ronica Ragavan who is a former director of Islandsite were arrested and appeared at Bloemfontein Magistrate’s Court, Free State yesterday.
They were arrested on charges pertaining to the R280 million Estina Dairy farm project.
The trio appeared on charges of fraud, theft, corruption and money laundering.
Zwane and Govender paid the R10 00 while Ragavan was warned to appear as she was previously arrested in this matter in 2018.
NPA’s Investigating Directorate (ID) national spokesperson Sindisiwe Seboka said the arrests arose from the alleged looting of the Free state Department of Agriculture through a company called Estina.
Seboka said on July 5, 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 R228m.
Paras Dairy (a company incorporated in India) was presented as Estina’s partner in the Vrede Dairy Project.
In the charge sheet, ID alleges that in 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.
The agreement further stipulated that the department was to contribute R342m including VAT over a period of three years.
Estina received R280m from July 2012 to April 2014.
Seboka said investigations also revealed that no proper tender procedures were followed with regards to the decision to fund the proposed Vrede Dairy Project.
She said Estina did not adhere to its obligations in terms of the agreement as only the department paid its contribution into bank accounts held by Estina.
Seboka said the investigations had revealed that the entire Vrede Dairy Project was designed to extract funds from the State. The other accused previously arrested in 2018 will be summoned to appear on the next court date.
“The enrolment of this case demonstrates the commitment of the ID to deal with perpetrators of state capture,” said advocate Andrea Johnson, head of ID.
“This case should serve to remind the people of the Free State that this matter was not forgotten. It does however take long to investigate and put together appropriate charges for prosecuting such complex cases. The Vrede Dairy Project destroyed the lives of the people and communities it was supposed to empower and uplift. The enrolment of the matter is a step closer to delivering justice to the people who were alleged to have been prejudiced by the criminal conduct of the accused,” Johnson said.
Since Zwane is a sitting NEC member and has been charged, it would be interesting to see if the party will ask him to “step aside” since the resolution states that any member who is criminally charged with serious offences should do the honourable thing by vacating their position.
Political analyst Professor Sipho Seepe said he expected Zwane to step aside.
“The ANC step-aside rule is clear. Members of the ANC who are facing charges of corruption are required to step aside voluntarily until they have resolved their challenges. If not, they will be suspended temporarily while the case is being attended to. As it is with members that have stepped aside, I expect Zwane to step aside,” Seepe said.
UFS Professor Sethulego Matebesi concurred with Seepe in saying that Zwane had to step aside.
“For me the step-aside rule has to come to effect, Zwane must step aside,” Matebesi said.
This is also happening as the party is preparing to host its 55th national conference in December.
The Zondo State Capture Commission fingered suspended ANC secretary general Ace Magashule and Zwane who was agriculture MEC for Estina.
The commission’s chairperson Chief Justice Raymond Zondo recommended lifestyle audits on senior officials and politicians fingered in the dairy project.