Public protector finds that Deputy President Jacob Zuma declared more than R1-million as well as loans received from associates

Deputy President Jacob Zuma has been cleared on charges of violating the strict code of conduct that governs the interests of cabinet ministers.

It is understood that Public Protector Lawrence Mushwana has found that Zuma had declared a series of payments totalling more than R1-million - paid into his account over a period of about five years by, among others, wealthy Durban businessman Vathasallum Reddy.

The payments and loans are believed to have been declared on the confidential section of the register under the Executive Members Ethics Act, which governs the conduct of cabinet ministers and senior executives and determines whether a conflict of interest exists in relation to their financial interests.

Reddy has admitted to giving Zuma a loan of R100 000, and Schabir Shaik, Zuma's financial adviser, has also conceded giving him interest-based loans.

It is understood that President Thabo Mbeki has accepted the report and tabled an accompanying letter that calls on his director-general, Frank Chikane, to attend to some procedural problems raised in the public protector's report.

Only three people have access to the confidential section of the register: Mbeki, the public protector and the cabinet secretary.

The public protector's report does not have any bearing on the suspended investigation by the Scorpions into whether Zuma solicited a R500 000 bribe from a French arms company, in return for using his political influence to secure a contract in the multibillion-rand arms deal.

But it clears Zuma in terms of disciplinary action by parliament, which would have acted on any finding that he had failed to declare gifts, loans or payments made to him.

The report will come as a relief to Zuma, who has been fighting a rearguard action to clear his name ever since National Director of Public Prosecutions Bulelani Ngcuka's statement in August. Ngcuka had said that although there was prima facie evidence of corruption against Zuma, he would not be prosecuted as there was no certainty the state would win its case.

Ngcuka's statement was met with widespread irritation in senior ANC circles, and some sections of the party are pushing for disciplinary action against him.

At the same time, there are indications the ANC is moving to isolate ANC veteran Mac Maharaj and senior Foreign Ministry official Mo Shaik, who have claimed publicly that Ngcuka was an apartheid spy and has abused his office.

Maharaj and Mo Shaik also rallied around Zuma on the basis that he is innocent until proved guilty and was unfairly smeared by Ngcuka's statement.

The public protector's finding, in response to a request from the Democratic Alliance last month, was tabled in parliament yesterday along with a letter from Mbeki, and was expected to be published on parliament's website today.

The existence of the payments and loans into Zuma's account emerged from the charge sheet in the trial of Schabir Shaik.

Following the publication of the charge sheet in August, Ngcuka referred copies of the documentation relating to the payments and loans to Zuma to parliament's joint committee on ethics and members' interests.

The committee met last month and confirmed it had discussed the Zuma issue, but refused comment on the matter.

The DA's Douglas Gibson first wrote to the public protector on September 15, requesting him to carry out the investigation. Mushwana initially refused, but later agreed to carry out the investigation after the DA wrote him a strong letter of protest.

In the letter, Gibson referred to those sections of the Schabir Shaik charge sheet which stated that "acknowledgements of debt in Zuma's name have been found in the Nkobi documentation amounting to some R340 000".

Nkobi Holdings, a front company allegedly used by Shaik in the name of the family of the late treasurer-general of the ANC, Thomas Nkobi, is accused number two in the indictment of Shaik.

The charge sheet also stated that on February 28 1999 an amount of R1,2-million was written off in the Nkobi books. It said Zuma could at no stage afford to repay the "loan".

With acknowledgements to John Battersby and The Star.