Two associates of the Gupta brothers have pleaded not guilty to the charges against them in the R37.7 million tax fraud trial involving the failed Estina dairy project in the Free State.
R37.7 million Estina tax fraud trial
The trial against Kamal Vasram and Saliesh Indurjeeth began on Monday in the Pretoria Magistrate’s Court.
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The pair 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 charges arising from a joint investigation by Sars and the National Prosecuting Authority‘s (NPA) Investigating Directorate.
Trial proceedings
The trial on Monday heard evidence from the state’s first witness, Piet Swart, a South African Revenue Service (Sars) investigator with over 40 years of experience.
Swart testified about the customs clearance submission which relates to nine shipping containers that carried different dairy equipment purportedly from Gateway Limited – an alleged Gupta front company in the United Arab Emirates (UAE).
Part of the dairy equipment, a pasteurisation plant imported from India, was invoiced to Estina by Gateway.
The state alleges that Estina submitted fraudulent customs clearance documents in support of a VAT refund claim to the value of more than R37.7 million.
Swart is expected to continue his testimony on Tuesday on the customs clearance submissions related to nine shipping containers.
The trial is expected to conclude on Thursday.
Estina dairy farm
In 2012, a Gupta-linked company called Estina 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 area.
However, the project was used to loot the department’s coffers, with millions of rand allegedly siphoned off to the Guptas.
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