The #GuptaLeaks Expose: Taxpayer Money Milked via Free State Dairy Project

New information has emerged via the so-called #GuptaLeaks revealing how the controversial Gupta family utilized state contracts and political contacts to amass millions offshore by exploiting a dairy project in the Free State, South Africa.

In 2013, the provincial government gave Estina (Pty) Ltd, an unknown company, free agricultural land and millions in funding without tender. Despite signs of the Gupta family’s involvement, the family consistently denied all but a small consulting contract worth R138,000. However, a slew of leaked documents appears to show that the Gupta family enjoyed significant control over the project, siphoning approximately R84-million to a company under their control based in the United Arab Emirates (UAE).

Mosebenzi Zwane, former Free State MEC for agriculture and current South African Minister of Mineral Resources, played a pivotal role in establishing the controversial dairy project in 2012. Later that same year, the Gupta family treated Zwane and his choir to an all-expenses-paid trip to India, further fuelling their control.

The #GuptaLeaks reveal intricate machinery behind the Estina project. The Guptas were not only involved in staff recruitment for Estina, they endorsed salary decisions, approved bank loans and managed Estina's accounting. By the time this subterfuge was exposed and Estina was removed from the project in 2014, it had already received approximately R184-million from taxpayers.

The documents also show significant payments made to Gateway Ltd, a Gupta-run company based in the UAE. Although some construction did take place in South Africa, it appears a significant portion of the extracted funds were used for dubious offshore activities instead.

The Gupta family's vast political reach in the Free State becomes apparent through linked correspondence. A document from June 2014 titled 'Indian delegation' references a Gupta employee, involved in the dairy project, as an 'adviser to Free State Premier Ace Magashule'.

Despite attempts to solicit comments on these allegations from Vasram, Zwane and the Gupta family, responses have been noncommittal and vague. Investigations into the validity and authenticity of these leaked e-mails are currently underway.