Johannesburg - For eight years, significant chunks of Deputy President Jacob Zuma's expenses, his children's education, his house, his car and his party fees have been paid by his close friend Schabir Shaik's Nkobi group of companies, according to court papers.

Shaik and the company, named after an ANC stalwart, were charged yesterday with corruption, fraud, alternatively crime and theft, tax evasion, and "cooking the books", alternatively money laundering or possessing the proceeds of crime.

The charge sheet tells of a company without money paying a politician, allegedly for the most precious commodity in the business world - influence and protection.

According to the charge sheet, it made no business sense for Nkobi to "loan" Zuma any money.

"The Nkobi group was ostensibly not in the business of making loans to politicians and moreover it could not afford the payments, being at all times in a cash-starved position relying on bank overdrafts. It was borrowing money from banks at the relevant interest rates to 'loan' it to Zuma or Shaik interest-free," according to the charge sheet handed to the Durban Regional Court.

It says Zuma had a lot of debt and alleges that Shaik, the deputy president's financial adviser, knew this.

Papers presented to the court give details of Zuma's financial affairs. Among these are that:

In October 1997, Standard Bank took Michigan Investment cc, the close corporation in whose name Zuma's home loan account had been opened, to court, claiming R443 618.52. Shaik settled part of the outstanding amount.  

Zuma had an overdraft of R66 500 with Nedbank on May 14, 1998.

At the same time Zuma owed Wesbank R291 145.95 for a vehicle.

Zuma owed SA Permanent Bank R75 000.

Zuma's personal overdraft with Standard Bank was R105 717.61.

A few months later, Zuma owed AQ Holdings (Pty) Ltd R86 500 and was threatened with an application for sequestration. Nkobi settled the debt.

During 1999, Zuma overspent by R37 000 a month. The next year his overexpenditure was R29 000 a month.

The state alleges that between 1995 and 2000, Nkobi paid more than R1m to Zuma. A schedule to the charge sheet details payments for:

Cash.

Standard Bank, where Zuma had an overdraft.

Rent.

Zuma's car, including monthly payments and R5 130 for panel beating.

Travel.

Allowances for Zuma's children. (It seems most of them were paid about R600 a month pocket money on average.)

School and university fees.

Clothes.

The documents note five entries, totalling R64 000, under the name "Casanova JZ".

R21 000 paid to the ANC for "JZ's levies".

"This constitutes a general corrupt relationship between Zuma and Shaik," the charge sheet says.

It alleges Zuma was paid to further Nkobi's interests and that from the inception of the Nkobi group, he was a secret nominee shareholder - a position it says he obtained at no cost.

With acknowledgements to Estelle Ellis, Jonathan Ancer and the Cape Times.