By Lehlohonolo Lehana.
The Free State High Court has dismissed an application from Islandsite Investments to postpone the State’s bid to finalise an order freezing millions of rands worth of assets belonging to the Gupta-owned company.
The interim restraint order was granted against Islandsite Investments – which is owned by the Gupta family – in the same court in June 2021 in favour of the National Prosecuting Authority (NPA) and Investigating Directorate (ID).
It allowed them to restrain assets belonging to alleged Gupta associate Iqbal Sharma, his company Nulane Investments 204 (Pty) Ltd, and Islandsite Investments 180 (Pty) Ltd.
According to the ID, Islandsite belongs to Atul and Rajesh Gupta and their wives, Chetali and Arti Gupta.
Although the Islandsite directors wanted to oppose the application for the interim restraint order, the High Court found that they had “no standing” to do so without the approval of the company’s business rescue practitioners.
It said that business rescue practitioners Kurt Knoop and Johan Kloppers were the only ones who could represent the group.
The directors approached the Supreme Court of Appeal (SCA) for leave to appeal to challenge this finding.
The matter is supposed to return to the High Court for confirmation of the restraint order but the directors asked for a postponement, pending the outcome in the SCA.
Advocate Mike Hellens, SC, asked the court for a four-week postponement but on Friday, the application was dismissed.
However, it wasn’t a loss for the company directors because the interim restraint order was extended until October.
Arguments on the confirmation of the restraint order will now be heard on 20 and 21 October 2022.
The case relates to R24.9 million paid by the Free State Department of Agriculture for a feasibility study for potential farming projects in the province. The money was allegedly paid to Nulane Investment between 2011 and 2012.
NPA Investigative Directorate spokesperson, Sindisiwe Seboka, says they are happy with the outcome.
“We basically won. It essentially mean the case by the Islandsite has been dismissed. What is important is to clarify that the restraint order has been extended and as the NPA, we can peacefully sleep at night knowing that the assets are in safe hands,” says Seboka.