The second day of the Nulane Investments R24.9m fraud and money laundering case began with the first witness being cross-examined by the defence lawyers.

The trial relates to an alleged corrupt tender in which money was paid to Nulane Investments to conduct a feasibility study for the Free State's Mohoma Mobung project, on the basis that the company had unique skills to perform the work.

The state alleges Nulane Investments, however, had no employees on its books and subcontracted Deloitte to produce the report, for which it was paid R1.5m.

Gupta associate Iqbal Sharma is charged alongside Peter Thabethe, former head of the Free State department of rural development and Limakatso Moorosi, former head of the provincial agriculture department.

The other accused are Seipati Dhlamini, former provincial agriculture CFO, Sharma's brother-in-law Dinesh Patel and Islandsite director Ronica Ragavan.

The first witness, Siphiwe Mahlangu, an official from the National Treasury's forensic audit unit, was questioned by Ishmael Semenya on his evidence, including that he investigated whether the contract with Nulane Investments was a public-private partnership.

Semenya said it was “ludicrous” that Mahlangu as “an experienced forensic investigator” still investigated the allegation despite it being clear that the deal was not a public-private partnership.

Mahlangu indicated on Monday he had been asked in February 2021 by the investigating officer to assess documents pertaining to the Nulane feasibility study contract and a memo supporting the deviation from the normal procurement processes.

Willem Edeling, representing Dhlamini, took Mahlangu to task, arguing the investigating officer might have “manipulated” him regarding what direction to take.

Edeling put it to Mahlangu that he seemingly had “a certain direction to give evidence”. 

Mahlangu disputed this assertion, stating there were no restrictions placed by the investigating officer on his investigation.

The trial continues.

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