STATE witness Mahlomola Petros Mofokeng was grilled during the R25 million Nulane Investment trial in the Free State High Court on Monday, 6 February.
The former Free State Department of Agriculture and Rural Development employee could not dispute the defence’s version that the payment to Nulane was regular and lawful.
He was taken through documents that he and other officials signed as part of the deal between the department and Nulane.
He denied that the R4 million payment he was questioned about was made to Nulane as one half of a R8,3 million amount invoiced to the department by the company. Mofokeng said he did not agree, but conceded that he did not have evidence or documentation to dispute it.
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Advocate Kenny Oldwadge for Nulane representative Dinesh Patel said it was important that Mofokeng was clear about his testimony and that there were supporting documents the payment would be split into two.
Mofokeng told the court that he only signed an invoice that had R5 million which was the agreed upon price. “I recommended R5 million, as per instruction,” he said.
The case concerns alleged procurement fraud relating to R24,9 million paid to Nulane Investments, a company owned by alleged Gupta associate and former Transnet board member Iqbal Sharma between November 2011 and April 2012 by the department.
The money was allegedly paid to Nulane Investments for a feasibility study for the province’s flagship Mohoma Mobung project, on the basis that Nulane had unique skills to perform the work.
The state alleged that Nulane Investments, however, had no employees on its books and in fact subcontracted Deloitte Ltd, to produce the report, for which Deloitte was paid R1,5 million.
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It is alleged the only change made to the Deloitte report was to identify Paras Diary as a suitable implementing partner for the development of a milk processing plant in Vrede. The state alleged that this was the start of the R288 million Estina Dairy Project scandal. The trial continues.
