Publication: Sapa Issued: Durban Date: 2004-10-28 Reporter: Sapa

Zuma was Unable to Service Debts, Court Hears






Date 2004-10-28




Forensic auditor Johan van der Walt has concluded his report into the affairs of fraud and corruption accused Schabir Shaik with evidence that deputy president Jacob Zuma continued running up debts without being able to pay the accounts he already had.

van der Walt told the Durban High Court on Thursday that it was evident from Zuma's accounts and the way in which debt was incurred that he believed the debts would be settled by another party.

He said of Zuma's salary -- which was R20 000 per month in 1996, when he was still MEC of economic affairs in kwaZulu-Natal -- that he would not even have been able to pay the interest due on his debts.

van der Walt has been in the witness box since last Thursday when he first started presenting his audit report commissioned by the Scorpions.

Among charges Shaik faces is that he facilitated a R500 000 per annum bribe for Zuma for protection during investigations into arms deal irregularities.

With acknowledgement to Sapa.

* pays for the interest, school fees, etc. until ADS starts paying dividends on his 2,5% occult shareholding in Nkobi Holdings.

Simplistic Accounting

ADS share of combat suite contract = R450 000 000 in 1998 Rands = R900 000 000 in 2004 Rands
Nett Profit Margin before tax = 33%
Nett Profit before tax = R300 000 000 in 2004 Rands
Years of Contract Execution = 6
Nett Profit before tax per year = R300 000 000/6 = R50 000 000 in 2004 Rands
Nett Profit after tax per year R50 000 000 x (1 - 42%) = R29 000 000 in 2004 Rands

Nkobi Holdings has 20% shareholding in ADS
Occult Shareholder has 2,5% shareholding in Nkobi Holdings
Occult Shareholder has 2,5% of 20% = 0,5% indirect shareholding in ADS
Occult Shareholder gets 0,5% of R29 000 000 = R145 000 of ADS dividends per year in 2004 Rands
(tax-free in the shareholder's hands)

R145 000 per year is probably not enough to sustain three wives, an ex wife and a dozen children, hence the stipulation in the agreement of effort to being "permanent support for future Thomson (Thales) projects" - like the SA Army's new Ground-Based Air Defence System (GBADS)?