Publication: News24 Issued: Date: 2004-10-14 Reporter: Iaine Harper Reporter: Sapa

Yengeni's Name in Shaik Trial




Date 2004-10-14


Iaine Harper, Sapa

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Durban - Schabir Shaik discussed corvettes with his director Themba Sono as far back as 1996, years before the government announced its intention to buy the warships, Durban High Court was told on Thursday.

Sono, the State's first witness in Shaik's fraud and corruption trial, said these discussions led Schaik into insisting that Nkobi (Shaik's group of companies) employ electronic experts.

Sono said he was also aware South Africa would soon be buying military equipment, because he (Sono) had friends in the government "like Tony Yengeni".

Yengeni was the chairman of the parliamentary defence committee which oversaw the arms deal.

He was arrested on fraud and corruption charges in 2001, and was later sentenced to four years' jail.

The court found he had accepted a bribe from a bidder in the arms-acquisition process, and had then tried to cover it up.

Sono said Shaik was aware South Africa's military equipment was due for an upgrade, and of the opportunities that existed if he positioned himself for these upgrades.

This was why Shaik contacted the Thomson arms company, Sono said.

It was only in 1999 that the cabinet announced its intention to buy new corvettes, aircraft, helicopters and submarines.

Shaik's Nkobi group ended up having a shared interest with Thomson in a multimillion-rand tender for the corvette programme.

Shaik's vision was to turn Nkobi into the "Murray and Roberts of South Africa... and even the Oppenheimers", said Sono.

Earlier, Sono said that the "non-sunny side" of Shaik's personality was what made him resign as director of Shaik's Nkobi Holdings.

Sono told the court he took exception to the "boorish and autocratic manner" with which Shaik treated some of his colleagues.

He said Shaik had two personalities - the "sunny side" and the other "non-sunny side".

He said Shaik repeatedly boasted of his "political connectivity" with deputy president Jacob Zuma in discussions with potential business partners.

Shaik faces two counts of corruption and fraud relating to payments made to deputy president Jacob Zuma which the State claims was a bribe.

With acknowledgements to Iaine Harper, Sapa and News24.