Most of seized Atul Gupta funds to be released
Bloomberg|
Mar 10, 2018, 08.59 AM IST
A South African judge has ruled that state prosecutors cannot seize all of the funds they identified in a corruption case linked to the Guptas, granting an application brought by the politically connected family.
Prosecutors in January froze assets related to a dairy project in the country’s Free State province, saying that more than 220 million rand ($17 million) destined for the farm was transferred to the Guptas, via the Bank of Baroda, and a number of companies and associates. The parties fought back, saying there was no evidence they received the proceeds of crime and asking the funds be released.
Bloemfontein High Court Judge Andre Fouche Jordaan said on Friday he was amending the original preservation order, shrinking the amount of money that the state could freeze to 40.4 million rand. That amount was never disputed by the entities said to have received those funds. He also ruled that the National Director of Public Prosecutions pay the costs of lawyers hired by Atul Gupta and the companies that opposed the order.
State prosecutors earlier this year alleged Atul Gupta illegally received 10 million rand of taxpayers’ money that was meant to have been invested in the government-backed dairy farm. The Gupta family have close ties to former President Jacob Zuma and have been accused of using the association to win state business and influence government appointments. Zuma and the Guptas have denied wrongdoing.
In a separate case in Johannesburg on Friday, Export Development Canada, a North American credit agency, filed an application to ground aircraft ZS-OAK, operated by the Gupta family.
Prosecutors in January froze assets related to a dairy project in the country’s Free State province, saying that more than 220 million rand ($17 million) destined for the farm was transferred to the Guptas, via the Bank of Baroda, and a number of companies and associates. The parties fought back, saying there was no evidence they received the proceeds of crime and asking the funds be released.
Bloemfontein High Court Judge Andre Fouche Jordaan said on Friday he was amending the original preservation order, shrinking the amount of money that the state could freeze to 40.4 million rand. That amount was never disputed by the entities said to have received those funds. He also ruled that the National Director of Public Prosecutions pay the costs of lawyers hired by Atul Gupta and the companies that opposed the order.
State prosecutors earlier this year alleged Atul Gupta illegally received 10 million rand of taxpayers’ money that was meant to have been invested in the government-backed dairy farm. The Gupta family have close ties to former President Jacob Zuma and have been accused of using the association to win state business and influence government appointments. Zuma and the Guptas have denied wrongdoing.
In a separate case in Johannesburg on Friday, Export Development Canada, a North American credit agency, filed an application to ground aircraft ZS-OAK, operated by the Gupta family.
