No payment to ANC found

The forensic auditor investigating Durban businessman Schabir Shaik's finances found no indication of money paid to the ANC in the books of the company that Shaik said he had set up for this purpose.

"Yesterday it was put to me that Floryn Investments was the vehicle Shaik used for contributions to the ANC. I have researched my files and found two financial statements from Floryn Investments, both signed by Shaik," Johan van der Walt said today.

He then explained that as far as he could ascertain, Floryn Investments was a dormant company.

"If Floryn was the vehicle to make payments to the ANC one would expect to see them reflected in their annual financial statements," Van der Walt said.

That left the court to conclude that either the money was not paid to the ANC or it was paid to the ANC and not reflected in the books.

Van der Walt said he considered the latter to be the most probable.

Deputy President Jacob Zuma was not and is not a shareholder of Shaik's Nkobi group of companies, counsel for Shaik, Francois van Zyl SC, indicated to the Durban High Court yesterday.

Shaik is on trial for alleged corruption and fraud which the State says was the result of a "general corrupt" relationship between Shaik and Zuma.

Shaik has pleaded not guilty. He has said that the R1 million in payments he and his companies made to Zuma were no secret.

Shaik has also produced a revolving credit agreement between him and the deputy president.

A large part of Van Zyl's cross-examination yesterday of forensic auditor Johan van der Walt, who is giving evidence for the State in the trial, was focused on the commercial relationship between Shaik and the ANC.

Firstly, Van Zyl pointed out to Van der Walt that it was Shaik's vision, and that of former ANC treasurer Thomas Nkobi, to obtain shareholding for the ANC in a number of structures.

This would have mimicked similar schemes that were successfully set up in Malaysia.

Previously, the court heard that Shaik was impressed by the way black economic empowerment was handled in Malaysia.

But the court heard from Van Zyl that the ANC had rejected Shaik's and Nkobi's plans. He handed a letter, dated May 9, 1995, to the court in which ANC Treasurer-General Makhenkesi Stofile indicated this.

"I hope our personal relationship will not be affected by this decision," Stofile wrote.

"I have grown to respect your intellect and skills. Maybe we will still find a way to benefit from those."

Van Zyl said that Shaik would testify that he did not break his financial ties with the ANC. Shaik had started donating money to the organisation through one of his companies, Floryn Investments.

Van Zyl said Shaik's instructions were that it was a way to control donations to the party.

But Van der Walt, when asked to comment, said he found it "odd".

"The best way to donate money is to issue a cheque," he said.

Yesterday the focus briefly shifted to the proposed evidence of Glasgow-based Professor John Lennon who, owing to his work schedule, will not make it to the witness stand in South Africa any time this year.

The state wants his evidence to be led by satellite link. Shaik's legal team is opposing the application.

Judge Hilary Squires indicated he would give his ruling tomorrow.

With acknowledgements to Estelle Ellis and the Daily News.