Nulane Corruption Probe Revived as SCA Orders Accused Back to Court over R24.9 Million Deal

Background: Major Figures and Allegations

The legal proceedings concern businessman Iqbal Sharma, his company Nulane Investments, several former officials from the Free State Department of Agriculture (FSDoA), and individuals associated with the Gupta family. The case revolves around claims of an irregular payment from the FSDoA to Nulane Investments for a feasibility study connected to the “Mohoma Mobung Project,” which ultimately gave rise to the Vrede/Estina Dairy Farm project.

SCA Ruling Puts Case Back on Track

On 4 June 2025, following a ruling by SCA Judge Cagney John Musi in favour of the State, the National Prosecuting Authority’s (NPA) Investigating Directorate Against Corruption (IDAC) reinstated the case. The State will now continue the prosecution after earlier acquittals were overturned by the SCA.

Who Are the Accused?

• Iqbal Sharma and his company Nulane Investments
• Peter Thabethe, former head of FSDoA
• Limakatso Moorosi, former head of FSDoA
• Seipati Dhlamini, former FSDoA Chief Financial Officer
• Ronica Ragavan (representing Islandsite Investment, owned by the Guptas)
• Dinesh Patel, Sharma’s brother-in-law
• Islandsite Investment

Alleged Scheme Behind R24.9 Million Payout

The allegations state that the accused acted together in facilitating an irregular payment of R24.9 million by the Free State Department of Agriculture to Nulane Investments, purportedly to conduct a feasibility study for the department’s flagship project. This project would later become the Vrede/Estina Dairy Farm.

Investigations revealed that Nulane Investments sub-contracted Deloitte to carry out the actual feasibility study, paying the firm R1.5 milliona small fraction of what Nulane had been paid. The only modification alleged to have been made to Deloitte’s report was the naming of Paras Dairy as an implementing partner for establishing a milk processing plant in Vrede.

Key Legal Proceedings and Next Steps

After the Supreme Court of Appeal’s June 2025 decision, the case was officially re-entered by IDAC on 4 June. On Wednesday, the Bloemfontein Magistrate’s Court postponed the matter to 20 January 2027 for a pre-trial conference at the Bloemfontein High Court.

The State is now preparing for a renewed attempt to hold the accused accountable in the first major case of state capture brought to trial by IDAC.

Wider Implications and Connections

The Nulane case ties into broader themes of state capture and corruption, with the Vrede dairy farm project previously drawing significant scrutiny from the public and lawmakers. The case also gained further attention after the South African government was unable to secure the extradition of Atul and Rajesh Gupta from the United Arab Emirates. Both faced fraud and money-laundering charges connected to the same matter.

The Nulane case was the Investigating Directorate Against Corruption’s first state capture prosecution to reach trial.

Despite the complex legal pathmarked by acquittals, appeals, and renewed chargesthe revived proceedings underscore ongoing efforts to address allegations of large-scale public sector corruption in South Africa.

The next milestone in the proceedings will be the pre-trial conference scheduled for January 2027. Legal experts note that complex economic crimes typically face multiple delays and legal maneuvers, but the SCA’s intervention has amplified scrutiny and elevated expectations for accountability in cases involving public funds.

As the case continues, attention remains on the State’s strategy in presenting evidence and the outcome’s potential impact for future corruption trials in South Africa.