Party leader details his relationship with his financial adviser for the first time, write Karima Brown and Hajra Omarjee

The African National Congress (ANC) fears violence in the country if the prosecution against their presidential candidate, Jacob Zuma, continues. On Friday Zuma’s lawyers and the ANC made representations to the National Prosecuting Authority (NPA) about why the corruption case against him should not proceed.

Prosecutors heard for the first time Zuma’s version of his relationship with his former financial advisor Schabir Shaik, who is serving a 15-year jail sentence for corruption relating to the country’s multibillion-rand arms deal.

The talks between the NPA and Zuma’s legal team are at an “extremely sensitive stage”, parties to their discussions say. But both the NPA and Zuma’s legal team dismiss any possibility of a plea bargain, or of changing the indictment against him.

Relations between Zuma and the NPA have shifted over the past few months, with insiders saying the state is no longer prepared to prosecute him “at all costs”.

The talks between the defence and the prosecution take on urgency as the countdown to the April 22 elections draws closer.

If Zuma becomes the next president, he may well have to appoint the new head of the NPA ­ who might still have to decide the state’s case against him.

Zuma has to answer to 16 graft, fraud and racketeering charges which stem from the state’s investigation into his finances after Shaik’s conviction.

The ANC’s lawyer, Asif Latib , says the party made the case in written submissions to the NPA on Friday that Zuma’s continued prosecution would not be in the “public interest”.

“The corruption charges were brought over six years ago,” Latib says. “The NPA has had an opportunity to make their case in court and they were not able to. Zuma will probably be the president (of SA) in two months’ time.

“Look at the effect this case is having on the economy. The rand fell against the dollar the last time there was a judgment against him.

“We also fear violence should Zuma go to court while he is president.”

NPA spokesman Tladi Tladi will not be drawn on the details of the meeting, but says Zuma’s representation is “not out of the ordinary” .

“Every accused has the option of making representations…. As far as this meeting is concerned, it’s really not about being satisfied, the ink has not even dried yet. It would constitute an injustice to have an opinion on the outcome of the discussions,” Tladi says.

It is understood that Zuma’s legal team made an oral submission to the NPA on Friday which centred on three key issues.

Previously, his lawyers submitted written arguments detailing why the corruption charges are invalid. Besides arguing that Zuma’s relationship with Shaik was not corrupt, they are also making the case that there was a politically motivated conspiracy against him and that his continued prosecution is not in the public interest.

The ANC was terse on Friday about its talks with the NPA, saying only that the outcome was “neither here nor there”.

While the party has retained counsel on the matter, only Zuma’s team, led by Michael Hulley, met the state’s prosecutors.

“Either we convince them (the NPA) or we don’t. As far as the ANC is concerned no crime has been committed,” says ANC treasurer-general Mathews Phosa .

The party will apply to the Constitutional Court next week to be a friend of the court and to be allowed to make submissions in Zuma’s case.

Details of Friday’s meeting were sketchy, as the parties to the talks remained tightlipped about the specifics of the interaction for fear of jeopardising the fragile process of engagement.

Zuma and Shaik’s relationship dates back to when the two were bound by struggle ties in the ANC underground before the party was unbanned in 1990. Zuma and the ANC maintain that his relationship with Shaik was not corrupt.

Shaik’s brother Mo said Schabir did on occasion “ inappropriately advertise” his association with Zuma. However, he insists that his brother’s intentions were “never corrupt or intended to corrupt Zuma”.

The ANC president has gone to court almost 40 times since the charges were brought against him and speculation is now rife that a deal between him and the state could well be on the cards *1.

State and ANC officials were keen to “not play” the media, given the sensitivity of the process.

The NPA’s acting head, Mokotedi Mpshe, has the discretion to withdraw charges against Zuma.

Arguments that state institutions were politically motivated to ensure Zuma did not become the ANC’s and later SA’s president are understood to form the core of Zuma’s imminent application for a permanent stay of prosecution.

Zuma’s legal team is understood to have brought to the NPA’s attention on Friday just how damaging their information on political agendas *2 influencing Zuma’s prosecution could be to the future integrity of the prosecuting body and other state departments.

Prior to Friday’s gathering ANC insiders indicated that the party had “substantial” evidence of political interference in Zuma’s prosecution *3.

It is understood that the Zuma defence has an explosive affidavit which points fingers at senior political figures who served in the government under former president Thabo Mbeki *4.
 
NPA officials appear to be open to giving Zuma’s legal team a fair hearing this time around.

Judge Chris Nicholson found that Zuma had a right to make representations on his charges before a decision was taken to prosecute him. But Supreme Court of Appeal Judge Louis Harms found that Zuma did not have that right.

The ANC’s argument for public interest does have some merit, if one considers the NPA’s prosecutorial guidelines, which state that “a wrong decision” to pursue a case “undermines the community’s confidence in the prosecutions system”.

The guidelines also say that a decision to stop a prosecution must be made “with circumspection”. Zuma’s lawyers will most likely seize on these as an opening to make their case that the charges be dropped.

The ANC and several civil society organisations have urged the state to take into account the consequences of prosecuting Zuma at all costs. Some businesspeople have argued that the country would be better served if the prosecutors abandon their case against the future president.

Opposition Democratic Alliance leader Helen Zille has called on Zuma to do the right thing and step aside.

“Put your ambitions aside and act in the interests of the country and the constitution by publicly stepping down,” she said in an open letter to Zuma this week.

Zille also warned of a possible constitutional challenge to Zuma’s presidency.

“In fact, I have been reliably informed by senior members of the bar that your election could be challenged in the Constitutional Court,” she wrote.

“That is because your presidency would create a conflict of interest between your constitutional role as head of state and your status as an accused in a matter that has been brought against you by the state itself.”

However, constitutionally someone is ineligible to become head of state only if they have been sentenced to more than one year in prison.

Efforts by Zille and the Congress of the People ­ which broke away from the ANC ­ to prevent Zuma from becoming SA’s first citizen will no doubt be vigorously opposed by the ruling party and its allies.

“Look at the effect this case is having on the economy. The rand fell against the dollar the last time there was a judgment against him. We also fear violence should Zuma go to court while he is president”

With acknowledgements to Karima Brown, Hajra Omarjee and Business Day.

# Particulars of your relationship with Schabir Shaik, with specific reference to the circumstances surrounding your introduction, the nature of your acquaintance and details of any business relationship that exists or existed.

# Particulars of your relationship with any of the entities within or related to the Nkobi group of companies, with specific reference to the commencement and nature of such relationship, any shares directly or indirectly held in any of the entities and any financial interest in the business of any of the companies in question.
# Your knowledge of and/or involvement in the business of any of the shareholders of Nkobi Holdings, to or with Star Corp, Clanwest Investments, Floryn Investments and Workers College.
# Particulars of your relationship with any of the entities within or related to the Thomson/Thales group of companies, with specifically the commencement and nature of such relationship, any shares directly or indirectly held in any of the entities, any financial interest in the business of any of the companies in question.
# Particulars of your relationship with Jean-Paul Perrier, Alain Thetard, Pierre Moynot and or any of the directors and or office bearers of any of the entities within the Thomson/Thales group of companies, specifically the circumstances surrounding your introduction, the nature of your acquaintance and details of any business relationship that exists or existed.
# Particulars of your relationship with African Defence System[s], any shares directly or indirectly held in the company, and any financial interest in the business of the company.
# Your knowledge of or involvement in the establishment of a business relationship between Schabir Shaik, Nkobi Holdings, Nkobi Investments and or any company with the Nkobi Group and Jean-Paul Perrier, Alain Thetard, Pierre Moynot, Thomson-CSF-France , Thomson-CSF Holding or any other entity within the Thomson group.
# Your knowledge of the business relationships and detail of joint ventures, with specific reference to the national contract for the driver's licences, the contract in respect of the Durban airport and the national ID card contract.
# Particulars of the following meetings between Jean-Paul Perrier, Alain Thétard and or any other representative of the Thomson/Thales group, Schabir Shaik and with, specifically the reason for the meetings, the identities of the parties present and the nature of the discussions that took place at :
 
a)London on 2 July 1998 b)Paris during the period 1997 to date c)Durban on 11 March 2000 d)All other meetings in South Africa during the period 1997 to date.
 
# Particulars of any involvement on your part ensuring Nkobi's participation in the corvette bid through its effective shareholding in African Defence Systems, with specific reference to the meeting on 18 November 1998* attended by Schabir Shaik and representatives of Thomson CSF/Thales.
# Details of any undertaking on your part to protect Thomson-CSF in respect of the investigations regarding the award of the contract for the supply of the corvette, and particulars of any actions taken in this regard.

# Your knowledge of and/or involvement in the acquisition of armaments by the Department of Defence, with specific reference to the role of Parliament in the acquisition process and the business interest and involvement of the Nkobi Group in the corvette programme.
# The office of the Presidency issued a statement on September 9, 1999 in which allegations of your involvement in the arms deal were denied. Details of your knowledge relating to the initial allegations and the content of the presidential statement are requested.

# Financial benefits received directly or indirectly from 1995 to date from :

• Schabir Shaik
• Nkobi Holdings
• Thomson CSF/ Thales entities
• Jurgen Kögl and /or Cay nominees
• former president Nelson Mandela
• Bohlabela Wheels
• Durban businessman Vivian Reddy
# The amount of money received, any repayment agreements if these were loans and an explanation of how the money was used is requested in all of the above.

# Particulars of the development of a traditional village and Nkandla in Northern Kwazulu-Natal with reference to :
 
a)All dealings with and agreements reached with Tusker & Schumann in respect of the drafting of sketch plans and construction drawings for the development, whether the interaction was in person or with the assistance of an agent, representative and or a friend or relative.
 
# Details of the financing of and all payments made for the plans drafted in respect of the development.
# Details of all dealings with and agreements reached with Eric Malengret and or Eric's Industrial Plumbing and Building cc.
# Particulars of the financing of an all payments made in respect of the development in question.

# Particulars of your debts in respect of AQ Holdings and Development Africa, with specific reference to the incurrence thereof, the amount involved and the settlement thereof.
# Particulars of your debt in respect of Michigan Investment cc for the period 1994 to date, with specific reference to the incurrence thereof, the amount involved, action taken by Standard Bank and settlement thereof.
# Particulars of the overdraft facilities and status of your Nedbank, Standard Bank, WesBank and SA Permanent Bank accounts during the period 1994 to date.
# Particulars of all expenses paid on behalf of the ANC during the period 1994 to date.
# Particulars of your income during the period 1994 to date.
# Code of Conduct and disclosures to Parliament.
# Particulars of your disclosures during the period 1999 to date in the Register of Members' Interest.

* The very day the Cabinet announced the preferred suppliers of the Strategic Defence Packages

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With acknowledgements to Ranjeni Munusamy, Mzilikazi Wa Afrika, Andre Jurgens, Jessica Bezuidenhout and the Sunday Times