Publication: Mail and Guardian Issued: Date: 2006-01-20 Reporter: Sam Sole Reporter:

Big Guns Target Shaik's R34m

 

Publication 

Mail and Guardian
Date

2006-01-20

Reporter

Sam Sole

Web Link

www.mg.co.za

 

The State's determination to shut down the flow of funds to the Schabir Shaik empire - and by extension to former deputy president Jacob Zuma's most loyal support network - was evident in the big guns wheeled out this week to take aim at Shaik's assets.

Top private advocate Wim Trengove, together with his junior, Alfred Cockrell - drafted in for this case - applied in the Durban High Court for a confiscation order of some R34-million against Shaik and companies in his Nkobi Group.

Watched by asset forfeiture unit boss Willie Hofmeyr, Trengove argued forcefully that Nkobi's effective 20% share in African Defence Systems - majority owned by Thales in France - was obtained as a result of his corrupt relationship with Zuma.

The shares were, therefore, the proceeds of crime, he argued, as were dividends paid for the benefit of Nkobi. These amounted to R13-million, since the company acquired the shares in 1999.

Last year, Shaik was convicted of two counts of corruption and one of fraud by Judge Hilary Squires, who is also hearing the application by the asset forfeiture unit.

In terms of the Prevention of Organised Crime Act, the State can, following a conviction, apply to the same court for a civil order confiscating any assets shown to have been obtained as a result of that crime or "in connection with" a related criminal activity.

The law, drafted mainly to deal with organised crime, has been used sporadically by the forfeiture unit sine it came into being in 1998 to deprive convicted criminals of ill-gotten gains.

In this case, the State argued that Shaik had used his corrupt relationship with Zuma to sell himself and his companies to Thales. It was Shaik's now-notorious "political  connectivity" that attracted Thales, and that, in turn, was based on having Zuma in his pocket.

Secondly, Trengove argued, Zuma had intervened on Shaik's behalf and persuaded Thales to go into partnership with Nkobi, at a critical point when Thales seemed about to abandon Shaik for a different empowerment partner.

As it emerged in the trial, Zuma and Shaik held a meeting with Thales representatives in London on July 2 1998 where they persuaded the French to reinstate Nkobi as its chosen partner. Again, Trengove argued, this intervention was founded on Shaik's generally corrupt relationship with Zuma.

In reply, advocate François van Zyl argued that in the main case Judge Squires had, in effect, found no crime occurred with regard to interventions by Zuma in the course of his duties as ANC deputy president, rather than in the course of his official duties as national deputy president or a provincial minister.

These interventions had specifically included Zuma's interventions to "mediate and dispute" with Thales over Nkobi's status as its preferred partner.

Van Zyl said the State could not, in effect, attempt to reopen this aspect of the case via confiscation proceedings.

In any case, he argued, the agreement with Thales to pursue business in partnership with Nkobi dated back to at least 1997, predating the corrupt relationship with Zuma.

Judge Squires indicated he would hand down judgement in due course.

With acknowledgements to Sam Sole and the Mail & Guardian.