Publication: The Star Issued: Date: 2007-07-27 Reporter: Tania Broughton

Shaik Set to Forfeit R41m to The State



The Star




Tania Broughton

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Schabir Shaik has sold, for R41-million, the arms-deal shares which got him into trouble.

But the businessman, who is now into his third month in the hospital at Westville Prison, where he is serving 15 years for fraud and corruption relating to his corrupt relationship with ANC deputy president Jacob Zuma, will not be able to get his hands on the money.

Instead it is being kept in a call account by a court-appointed curator pending a ruling by the Constitutional Court as to whether it will give him leave to appeal against an asset forfeiture judgment against him.

If he loses, it will be forfeited to the state.

In Shaik's criminal trial before the Durban High Court, Judge Hilary Squires found that his Nkobi Investments had secured a 25% stake in French arms company Thint - and as a result, a 20% share in South African arms company African Defence Systems (ADS) - through Zuma's intervention.

Apart from convicting him, the judge granted a confiscation order for just more than R34-million - deemed to be the proceeds, or benefit, of his crimes.

On appeal to the Supreme Court of Appeal, this was reduced to R33,9-million.

At that time, curator Trevor White of PricewaterhouseCoopers had control over assets valued at about R30,5-million, including the Thint shares, cash of R1,5-million, Cellsaf shares and the equity in a plush house in Innes Road, Morningside, Durban.

Shaik - through his brother Mo, who is running his businesses - has been keen to sell the Thint shares for some time and has been negotiating, with White's blessing, with the French company.

In a report submitted to the Durban High Court yesterday, White said the deal had gone through last week.

The final sale agreement, signed by Mo Shaik, Pierre Moynot of Thint, and White, stipulated that White would receive just more than R40-million and Nkobi about R900 000 from the sale of shares.

Shaik is still awaiting word from the Constitutional Court on whether it will grant him leave to appeal against his convictions and sentence and the confiscation of his assets.

With acknowledgements to Tania Broughton and The Star.

Thint buys Nkobi Holdings 20% share of ADS making their share now 80% and FBS's share 20%..

Can Thint be worried about forfeiting their entire 80% to The State if they get found guilty in the trial which should be upcoming any time now?

On the evidence Thint must surely be found guilty should there be a trial.

So this seems to indicate that they don't think that there will be a trial.