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North West Businessmen Face 134 Corruption Charges After Allegedly Defrauding Rainbow Farms of R4.9 Million

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Two businessmen from the North West are facing 134 charges of corruption after allegedly defrauding Rainbow Farms of R4.9 million. The fraud occurred between 2019 and 2022, involving fraudulent coal supply contracts.

Johan Buitendag, 49, and his companies, Bosman Drooers CC and Stetner Transport (Pty) LTD, are accused of working with Jan Antonie van der Nest, 56, an agricultural executive at Rainbow Farms, to manipulate coal procurement contracts. According to the Directorate for Priority Crime Investigation (Hawks) and the National Prosecuting Authority (NPA), van der Nest used his position to influence Rainbow Farms’ decision to award a lucrative contract to Bosman Drooers CC, which was co-directed by Buitendag.

After securing the contract, van der Nest allegedly purchased a truck under his own company, Ruton Trade and Invest (Pty) LTD, which was then leased to Stetner Transport, owned by Buitendag. This arrangement resulted in Stetner Transport making 134 payments, totaling over R4.9 million, into the bank account of Ruton Trade and Invest, leading to a loss for Rainbow Farms.

The investigation also revealed that van der Nest received direct payments from Buitendag, described as “gratification,” which were deposited into his personal bank account. Van der Nest failed to disclose these payments or his conflict of interest, violating company policies and breaching the trust of Rainbow Farms.

Both Buitendag and van der Nest appeared before the Rustenburg Magistrate’s Court, where they were granted bail of R25,000 each. The case has been postponed until February 19, 2025, for further disclosure and investigation. The Hawks’ acting Provincial Head in North West, Brigadier Silas Munzhedzi, praised the investigative team’s efforts in uncovering the corruption and fraud that resulted in significant financial losses for Rainbow Farms.

This case serves as a reminder of the critical importance of maintaining transparency and ethical practices within corporate and agricultural sectors, especially when dealing with public resources and company funds.

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