Deputy President Jacob Zuma's 12-unit village at Nkandla, KwaZulu Natal, is an impressive sight.

Built using money Zuma allegedly received in bribes from French arms company Thales (formerly Thompson CSF), the village is situated about 80km from the nearest development.

It is surrounded by deteriorating houses and kraals. About 30km of the road leading to the estate is gravel, and a tuck shop and primary and high schools are the only "modern" buildings close by.

Goats, sheep, donkeys and cows graze and roam around the village. They squeeze through the fence of the estate unhindered and graze on its grounds.

The view is spectacular, however. The estate is built at the bottom of a valley encircled by towering hills.

A heavily-armed security guard at the gate to the village yesterday said some of the livestock grazing around the estate belonged to Zuma's wife.

Driving through Nkandla, one is overcome by the overwhelming sense of nothingness, the stagnant atmosphere, the hopelessness, the poverty. And then, suddenly, the breathtaking, traditionally-built residential estate at the centre of the district makes its appearance.

When local residents gave directions to the "village", which was completed in April 2001, they said: "You won't miss it. It's huge and luxurious."

From afar, the estate does not seem to match expectations raised by its R1.3 million price tag, but as one nears it, the locals' tales of luxury beyond their wildest dreams become understandable.

An unfinished driveway leads to a double-door garage, where a new Nissan X-Trail is parked. There are 12 separate structures, although only a few have electricity. The estate forms part of the Scorpions unit's investigation into allegations that businessman Schabir Shaik, Zuma's financial adviser and who is standing trial for corruption linked to the arms deal, arranged bribes for Zuma in return for Zuma's protection of Thompson CSF's arms contract tenders.

According to the charge sheet, which includes allegations of corruption, fraud and tax evasion against Shaik, Zuma "needed funds to pay for the development of his traditional estate".

It also alleges that payments for the estate were made to Zuma by Shaik, laundered via prominent Durban businessman Vasathallum (Vivian) Reddy "from one of his companies, Edison Health (Pty) Ltd", in October 2000.

Reddy allegedly paid R50 000 to developers Eric's Industrial Plumbing and Building as one of the payments for the Nkandla estate.

It also details how, three days later, another R50 000 drawn from Reddy's personal account was paid to Eric's. The charge sheet states that the developer's cashbook allegedly "reflects to the receipt of the R50 000 as 'Receipt JZ' ".

The bulk of the outstanding debt was settled by means of a bank loan, facilitated by Reddy, from First National Bank in the amount of R900 000 "although the money has not yet been reflected in (Eric's) accounting records".

Reddy, alleges the Scorpions, "has facilitated the application for the bond since the initial approach during February 2002".

According to the Scorpions a debit-order agreement, signed by Reddy, would pay the bulk of the debt from January 2003 at monthly instalments amounting to R12 117. 11 "in his own name".

Contacted for comment yesterday, Reddy promised to call back but then switched off his cellphone.

With acknowledgements to Xolani Mbanjwa and The Mercury.