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STATE CAPTURE CASE

Government employee tells Vrede Dairy Project trial: I did not report allegedly irregular Nulane Investments transaction

Shadrack Cezula, a former Free State Department of Agriculture and Rural Development supply chain manager, testified for a second day in the Bloemfontein High Court corruption trial involving a R24.9-million feasibility study for the Vrede Dairy Project. Cezula admitted to writing a letter — dictated by then chief financial officer Seipati Dhlamini — that deviated from the department's normal procurement procedures to appoint Nulane Investments. Eight people have been accused in connection with the case, including two former heads of the agriculture department and three company directors. It is alleged that Nulane Investments lacked capacity and subcontracted Deloitte to deliver the service, leading to the controversial Vrede Dairy Project costing R280-million. Cezula revealed that he agreed to turn state witness in order to avoid criminal charges, but did not know what possible charges he could face. The trial continues on Friday with another witness expected to testify.
Government employee tells Vrede Dairy Project trial: I did not report allegedly irregular Nulane Investments transaction Gupta family associates Iqbal Sharma, Peter Thabethe, Limakatso Moorosi, and Seipati Dhlamini appear in the Bloemfontein High Court on 8 September 2022. (Photo: Gallo Images / Volksblad / Mlungusi Louw)

Shadrack Cezula, a one-time supply chain manager in the Free State Department of Agriculture and Rural Development, on Thursday testified for a second day in the Bloemfontein High Court corruption trial involving a R24.9-million feasibility study for the Vrede Dairy Project.

Cezula has turned State witness.

He admitted having written a letter — dictated by then chief financial officer Seipati Dhlamini — motivating that the Free State agriculture department deviated from its regular procurement procedures in the appointment of Nulane Investments.

The eight accused include two former heads of the agriculture department — Peter Thabethe and Limakatso Moorosi.

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The other accused are Iqbal Sharma, Dinesh Patel and Ronica Ragavan. A second company — Islandsite Investments One Hundred and Eighty — of which Ragavan was a director, is also among the accused.

According to the charge sheet, Nulane Investments — awarded the contract for the feasibility study — lacked capacity and subcontracted Deloitte to deliver the service. The study led to the controversial Vrede Dairy Project that cost the provincial department R280-million.

During cross-examination, Cezula admitted that he had agreed to turn state witness to avoid being charged criminally, but claimed he did not know what charges he could potentially face.

The State is expected to call its third witness on Friday morning. Acting Judge Nompumelelo Gusha is presiding. DM

Comments (1)

Dennis Bailey Jan 27, 2023, 07:52 AM

They all look very happy!