Scorpions investigators have turned up the heat on Deputy President Jacob Zuma. This is how he was drawn into the probe

The Mr X Mystery

For months investigators with the Scorpions had been trying to prove a mysterious man, known only as "Mr X", got a R500 000 arms-deal bribe.

They had documentation that showed that Mr X had allegedly used a secret code to request the bribe from an arms company that was bidding to supply warships to the navy.

Two weeks ago, the Mail & Guardian newspaper revealed that the mysterious Mr X was none other than Deputy President Jacob Zuma. The revelation was made in a confidential affidavit by Scorpions prosecutor Advocate William Downer .

In it he said that the Scorpions had a "reasonable suspicion" that two companies that got a major chunk of the corvette contract "gave, offered or agreed to give Zuma a bribe to misuse his position".

The fact that the Scorpions are investigating Zuma is significant because last year the government proclaimed its top officials clear of any wrongdoing in the deal.

Defence Minister Mosiuoa Lekota said there was no evidence of "improper or unlawful conduct" by the government and no grounds to suggest its contracting position was flawed.

The government claimed that conflicts of interest arose only in relation to smaller subcontracts, which were not its responsibility.

But if the Mr X bribery allegations are proved true, it will show that one of the main contractors, Thomson-CSF (now called Thales), got its slice of a R6-billion contract to supply warships to the navy by shady means.

The Shaik Connection

Last year, the Scorpions raided Thomson-CSF in France, South Africa and Mauritius, and the home and business of Durban businessman Schabir Shaik.

Shaik was a director of Nkobi Holdings, African Defence Systems (ADS) and Thomson - which all benefited from the arms deal. His other job was as Zuma's personal financial adviser.

During the raids the Scorpions discovered that Shaik had been in possession of confidential Cabinet arms-deal minutes, which may have given him an unfair advantage over competitors bidding for the corvette contracts.

His brother, Shamin "Chippy" Shaik, as the government's head of acquisitions in the arms deal, was effectively responsible for putting together and co-ordinating the entire arms deal.

Schabir Shaik was charged with being in possession of the Cabinet minutes.

The Focus Turns to Zuma

The Scorpions began investigating whether Zuma had a hidden interest in ADS, the South African partner of Thomson/Thales.

Zuma has denied the "mischievous" bribery allegations, saying he is innocent.

But Downer's affidavit raises several questions about the role Zuma and Schabir Shaik played in the corvette deal, and their "long-standing" relationship.

According to the affidavit, the Scorpions had evidence that a bribe was solicited from Thomson/ Thales and Nkobi "by a high-ranking government official (Mr X) for . . . continued protection against the pending investigation in respect of the arms deal" and "continued support and lobbying which could support Thomson".

Code Words and Secret Meetings

The Scorpions allegedly have evidence that Shaik phoned Zuma early in 1999 asking for help with the arms deal.

They believe that faxes flew back and forth between Thales's offices after a newspaper story in February 2000 hinted at a major investigation into the arms deal.

They also believe that :

• Shaik then set up a meeting with the Southern African chairman of Thales, Alain Thetard;
• Thetard sent colleagues in Mauritius and Paris an encrypted letter by fax which confirmed he had met Shaik and Zuma in a Durban hotel room (on March 11 2000);
• Thetard devised a code, which Zuma allegedly used to signal a payoff. Zuma allegedly asked for R500 000 a year for "continued protection" against an arms-deal investigation;
• Armed with newspaper cuttings on arms-deal corruption claims, Shaik flew to Mauritius in November 2000 for a "damage control" meeting with Thales. He was afraid of a Heath Unit investigation and said there "would really be something to worry about" if a "certain person" opened his mouth;
• The affidavit questions a share transaction between Thomson and Nkobi valued at R500 000;
• One of Shaik's employees was paid R40 000 and made to sign a secrecy agreement because that person "knew too much about the relationship between Schabir Shaik and Mr X"; and
• Shaik paid bills of more than R90 000 on behalf of Zuma between August 1996 and October 1999, including rent for a flat in Durban, and school and university fees.

With acknowledgements to Andre Jurgens, Jessica Bezuidenhout and Mzilikazi wa Afrika and the Sunday Times.