Deputy president says decision not to prosecute him is not helping at all'

Details of the corruption and fraud case against Durban businessman Schabir Shaik, released by the Scorpions yesterday, point to an alleged R1,2m money trail that starts at French defence company Thales and leads ultimately to Deputy President Jacob Zuma.

The 45-page charge sheet against Shaik reveals for the first time a set of financial transactions asserting that money did in fact illegally change hands, and that the money was used to settle Zuma's debts.

Details of the charges were released following Shaik's appearance in the Durban Regional Court on charges of corruption, bribery, theft and money laundering.

As the details emerged, Zuma complained again that the ambiguous announcement at the weekend of the Scorpions' decision not to prosecute him was "not helping at all".

He said that he thought a prima facie case should be taken to the courts for a decision. The decision not to prosecute him, he said, "leaves suspicion".

Despite the decision by the Scorpions not to charge Zuma, he is repeatedly mentioned in the Shaik charge sheet and the document details at length his financial affairs.

The document for the first time makes specific allegations against Thales, and alleges the company did pay "bribes", reflected in invoices of its Mauritius branch as "lobbying fees, Afrique du Sud Kobifin". The money was allegedly paid in terms of a R500000-a-year "service provider agreement" between Shaik company Nkobi Holdings and Thales' Mauritius branch.

"Nkobi did little by way of any service to justify this fee of R1m (or the amount of R250000 that was paid during February 2001)," the charge sheet says.

It states that during the last quarter of 2000, Zuma incurred a debt in the region of R1m in relation to his Nkandla development in northern KwaZulu-Natal. On February 16 2001, R250000 was transferred from Thales International Africa-Mauritius to the Absa current account of Kobitech, ostensibly in terms of the service provider agreement.

Within eight days, Nkobi issued a cheque in favour of a trust called Development Africa. It is the allegation of the Scorpions that this company took over debts owed by Zuma that were incurred by a contractor in the Nkandla development.

A surprise aspect of the charge sheet is that it alleges Thales was at first reluctant to enter into a business relationship with Shaik's company in relation to the arms deal. It says Shaik's brother Chippy, who was chief of acquisitions in the defence department, met Thales representatives on July 9 1998.

"Chippy Shaik indicated that he would facilitate matters for Thomson (which later became Thales) if Thomson's position with partners and friends was convenient to Chippy Shaik. He would otherwise make things difficult."

The charge sheet also says that from the inception of the Nkobi group, Zuma was a "secret nominee shareholder in the group The shareholding was obtained at no cost to Zuma."

The charge sheet paints a picture of a tight financial relationship between Zuma and Shaik, pointing out several situations in which Zuma's debts were allegedly paid by Shaik.

With calls for the resignation of Zuma mounting from opposition parties yesterday, pressure is also building on Justice Minister Penuell Maduna to reopen the case in a bid to give his cabinet colleague his day in court.

Experts said yesterday Zuma could try to bring the matter before the courts on the grounds that the decision not to prosecute was equal to justice denied. In a bid to clear his name, the deputy president could try to compel the prosecution authority to clear his name completely or let a judge weigh the evidence.

Political commentator Adam Habib said the decision amounted to a "kiss of death" for Zuma's political future.

Trial will reveal cracks': Page 3

With acknowledgements to Sapa and Business Day.