Durban - In a fresh blow to the reputation of deputy president Jacob Zuma and his "close friend", businessman Schabir Shaik, the two face new charges of corruption.

Shaik appeared in court in Durban yesterday on various charges, including corruption. According to the charges, Shaik used his friendship with Zuma to help position his company, Nkobi Holdings, to win major contracts.

According to the state's charges, Shaik used his friendship with Zuma to bolster Nkobi Holdings' position as a joint venture partner for a project to build an ecotourism school in KwaZulu-Natal.

When Glasgow University professor John Lennon excluded Shaik and his UK associate, Deva Ponnoosami, by not involving Nkobi, Shaik threatened to inform Zuma and do "whatever was necessary" to stop the project.

Shaik and Ponnoosami had previously enlisted Lennon's help in positioning Nkobi as a joint venture partner. In a letter to Shaik, Ponnoosami referred to trouble Lennon was experiencing in getting a recommendation from Zuma.

According to the charges, Shaik agreed to intervene and wrote two letters in Zuma's name, which Zuma later signed. In the first letter, Zuma expressed his "full support" for Lennon's proposal and stated he would appreciate funding being "rapidly progressed" so that the project could start as soon as possible.

In the second letter, addressed to Lennon, Zuma wrote: "Since our last meeting I have given this matter much thought, especially in the operational aspects ...

"To this end, I feel that a local partner is required to form a joint venture with yourself to bring this initiative to fruition and to assist understanding the local demands."   

In the end, the ecotourism school was never established.

In another project, the Point Waterfront Development, Malaysian conglomerate Renong held discussions with Mzi Khumalo, the chairman of the Point Waterfront Company, as well as the minister of public works and director-general of the public works department, outlining their ideas on how the development could be implemented as an empowerment project.

Khumalo later gave Renong the names of representatives who had been nominated to look after the empowerment interests. The representatives were the directors of Secprop, which was later renamed Vulindlela Investments.

Two other consortiums, including the Nkobi group, also made proposals.

The evening before the presentation to the Point Waterfront Company, the managing director of Renong, David Wilson, attended a meeting in the Nkobi office.

He was told the Nkobi consortium was very powerful and "it would not be in Renong's interests if they proceeded with the presentation with their current partners".

Shaik then proposed that a joint presentation be made with his consortium.

At a subsequent meeting between Zuma and a representative of the Renong chairman, Zuma said he "was not happy with the persons nominated to represent empowerment interests in the Point Development and proposed that [Shaik] should be involved in the project".

The case continues.

With acknowledgements to Margie Inggs and the Business Report.