Gupta-linked accused in alleged Estina project fraud plead not guilty

Two alleged Gupta associates on trial in connection with a R37.7m fraud case have pleaded not guilty to all the charges against them.

On Monday, Kamal Vasram and Saliesh Indurjeeth appeared at the Pretoria regional court. 

They face charges of fraud, contravention of section 54(1)(A) of the International Trade Administration Act and contravention of regulation 22 of the Exchange Control Act. The charges arise from a joint investigation by the SA Revenue Service and the Investigating Directorate into the failed Free State Estina project.

A pasteurisation plant, imported from India, was invoiced to Estina by Gateway, an alleged Gupta front company in the United Arab Emirates (UAE).

The National Prosecuting Authority (NPA) said investigations revealed Estina submitted customs clearance documents in support of a VAT refund claim.

“The customs declaration was scrutinised, whereupon the declared value of more than R37.7m for a ‘new’ pasteurisation plant was suspected to be excessively high,” the NPA said.

When Monday’s proceeding got under way, the state started by reading out the charges into the record.

The two men stood a few metres apart in the dock as they listened to the charges against them, after which they pleaded not guilty. About eight witnesses were present on Monday for proceedings.

The state’s first witness, Piet Swart, a Sars investigator with 40 years of experience, was sworn in.

Swart testified how the custom clearance document (SAD 500 and invoice) which included a customs declaration form, were submitted via Sars’ electronic data information (EDI) system by UTI as the clearing agent on behalf of Estina, to support a fraudulent VAT refund claim.

Explaining to the court, Swart said: “UTI is registered with Sars and is a clearing agent which conducted business on behalf of its client, Estina.”

The customs clearance submissions relate to nine shipping containers that carried dairy equipment from Gateway Limited in the UAE. He explained the containers each had a unique number.

“The exporter is recorded to be Gateway Limited with an address in the UAE and the importer is recorded to be Estina,” he said.

Swart explained that the port of loading was in India, while the port of discharge was Durban. He said the total shipment contained a total of 482 packages.

Evidence already in the public domain suggests that Gateway was used and controlled by the Guptas, as a conduit to launder money and to extract funds from SA.

The state further alleges that the overstated or inflated value was intentionally and unlawfully used by Estina and its sole director Vasram, to launder funds from SA, to the prejudice of the taxpaying public.

Vasram was the sole director of Estina during the commission of the alleged offences. The pair was arrested at the end of December 2021 and granted bail of R10,000 each.

They are two of several people arrested in connection with the Free State department of agriculture’s project in 2012, ostensibly to empower black farmers. Allegations later surfaced that it was being used to siphon cash, with high-profile government officials and the Gupta family implicated.

The trial will continue on Tuesday.

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