Varun Gupta

(LtoR) Peter Thabethe, Ashu Chawla,Ronica Ragavan, Nazeem Howa Varun Gupta, Takisi Masileng and Sylvia Dlamini, the suspects linked to the Estina dairy farm fraud and corruption investigation appear on February 15, 2018 at the Bloemfontein Regional Court.

Explainer: How this Estina Dairy Farm scandal puts Gupta brothers to the sword

Chickens are coming home to roost on this particular farm.

Varun Gupta

(LtoR) Peter Thabethe, Ashu Chawla,Ronica Ragavan, Nazeem Howa Varun Gupta, Takisi Masileng and Sylvia Dlamini, the suspects linked to the Estina dairy farm fraud and corruption investigation appear on February 15, 2018 at the Bloemfontein Regional Court.

Eight associates of the Gupta brothers were hauled into a courthouse in Bloemfontein on Thursday morning. They are facing charges including fraud and money laundering, for the part they played in the scandalous Estina Dairy Farm project.

South Africa has been desperate to hold the Guptas and the Zumas accountable for their role in state capture. So it was a pleasant surprise to see the Gupta network in court and Jacob Zuma leave the Presidency within the space of 12 hours this week.

But why have the wheels started turning just now? Yes, the ANC Presidency of Cyril Ramaphosa and departure of Jacob Zuma have been a big help. But this particular act of capture has actually been threatening to bring the Guptas down for months.

Everything you need to know about Estina:

Why is the Estina Dairy Farm so important to state capture?

Back in 2013, the Free State government granted a 99-year lease to a little-known ‘farming company’, Estina. They were given a 4,400 hectare stretch of land at the Vrede Dairy Farm. However, Estina were nothing but a front. The Gupta shell company were completely fake, and listed an IT Salesman as their main director.

Once Estina got their grant, around R25 million was transferred to Gateway Limited on 11 August 2013. That’s a Gupta business in Dubai. After washing their money in a complex laundering scheme, the Guptas eventually got government money into their own accounts.

The paper trail linking back to the Vrede Dairy Farm is one of the most damning, explicit groupings of evidence you could wish to see. When we reported on this last June following the leaked Gupta e-mails, it seemed certain to come back and bite the state captors on their arses.

Who is in court for the Estina Dairy Farm scandal?

  • Peter Thabethe (53), the Head of the Department of Agriculture and Rural Development in the Free State
  • Sylvia Dlamini (46), Chief of staff in the Ministry of Mineral Resources,
  • Dr Takisi Masiteng (47), General Manager for District Services in the Department of Agriculture
  • Varun Gupta (31), the executive director of Shiva Uranium and only Gupta to appear in court this week
  • Ashu Chalwa (46), a Director at Oakbay Investments
  • Ronica Regavan (40), a Director Oakbay Investments
  • Nazeem Howa (55), former Director of Oakbay Investments
  • Kamal Vasram (38), former Director of Estina (PTY) Ltd

Every single named person has worked in an intimately close business relationship with the Gupta brothers. After the hearing on Thursday 15 February, all eight of the accused were able to meet the terms for bail. Payments ranged from R10,000 up to R200,000.

What bail conditions did the “Vrede eight” get?

As part of their bail, each person facing these charges must report to their local police station twice a week. They have all had their passports seized, and are strictly required to inform the investigating officer if they plan to leave their area of jurisdiction. They are also forbidden from speaking to state witnesses.

Where are the Guptas?

It is believed all three are still in South Africa. Most of the heat has been on Ajay Gupta, who was yesterday declared a fugitive by Hawks. They have since confirmed Ajay is in this country, but suspect a private security firm has helped to keep him safe.

Hawks spokesperson Brigadier Hangwani Mulaudzi confirmed to Power FM this morning that they are “ready to engage” with that company, and they are preparing to charge them with “aiding and abetting a suspect”. They raided Saxonwold on Wednesday, following their investigation into the Estina Dairy Farm project.

When will the Estina case return to court?

We now have to wait five months for the trial to begin on 17 August 2018. It remains to be seen whether we can round the Gupta brothers up and have them sat facing a judge by then. Now, what a gratifying sight that would be.