Publication: The Mercury Issued: Date: 2005-02-22 Reporter: Estelle Ellis

Schaik (sic) Gets the Chance to Tell His Story

 

Publication 

The Mercury

Date 2005-02-22

Reporter

Estelle Ellis

Web Link

www.themercury.co.za

 

'It was a different comradeship'

After listening to allegation after allegation being brought against him for the past three months, Durban businessman Schabir Shaik finally had the chance yesterday to respond in person.

This is what he told the court on the first day of his evidence.

How I met Zuma

"After I left high school I worked in my father's business. My dad was unable to put me through a tertiary institution. But I managed to go for training in instrumentation. After that I worked in several industries, including Sasol II and Sasol III and the power station at Koeberg. At Koeberg I worked in process control. I was employed to test instruments to be used in the nuclear plant.

"Then I was offered a position to lecture at the Peninsula Technikon. I lectured there for one to two years before moving to their research division. I won a scholarship for the work I did in the mid-1980s.

"Right through my working career I was aware that my brothers were very involved in the ANC. In 1985 my brothers and father were detained. My father had a heart attack and was admitted to hospital. I went back home to assist in my father's business.

"At that time, Jacob Zuma was working (in the underground structures of the ANC) with my brother Mo Shaik.

"As a result of a decision taken by Zuma, my brothers were detained. I don't believe that Zuma knew the gravity or the consequence of his decision.

"After my brothers were released, Mo and I left the country under false passports.

"The bond of my family and my relationship with the deputy president began during the struggle. I was introduced to the deputy president by my brother Mo in London. The purpose was to begin my process of training and induction into the ANC - which was largely influenced by Mo, Chippy and Yunis.

"I had the option to assist in developing conduits of finance for underground operations. I was introduced to the late Thomas Nkobi, the treasurer-general of the ANC.

"I subsequently became a member of the ANC and became involved in the transfer of funds to South Africa.

"I met Zuma on several occasions in London. I often had to courier messages from Mo to Zuma."

Shaik said that after the ANC was unbanned in 1990 his relationship with Zuma had continued.

"But it had to be viewed in the context of the structure of the ANC. Zuma was our commander-in-chief *1. We literally placed our lives in Zuma's hands. Those were the foundations.

"But it was also a friendship. It was a different kind of comradeship. Zuma always wanted to know how things were going back home.

"Zuma was one of the first exiles to come back. My relationship with him continued after 1990. After 1994 Zuma returned to KwaZulu-Natal. Our families would often interact. My dad and Zuma became very close. I assisted him with transport *2.

"When Zuma came home there was no infrastructure for him. Helping him financially was an extension of our comradeship."

Thomas Nkobi

Shaik told the court that he and Nkobi had thought of a number of business plans to generate funds for the ANC - most importantly, for the ANC to hold shares in companies.

"After Thomas Nkobi died (in October 1994), President Nelson Mandela asked me to place everything on hold. He asked me to give him a full report of our work in Malaysia. (The new treasurer-general, Makhenkesi) Stofile met me in Cape Town. He was clearly happy to receive the report. He asked for an introduction to business people and politicians in Malaysia. The plan was for the ANC to take equity in companies. *3"

In May 1995, Stofile wrote to Shaik, telling him the ANC had decided not to support the vision he and Nkobi had of actively involving the party in business to generate funds.

Shaik added that he had met President Thabo Mbeki, who was then the deputy president. Mbeki had told him that it would be better if he pursued his business plans in his private capacity and not for the ANC.

"Mbeki said he disagreed with Nkobi. He said he did not want to create the wrong impression as they wished to create a free market economy in South Africa."

Shaik told the court he had brought two SA companies together with companies in Malaysia. He had then started Floryn Investments and Clegton Investments to house the income generated by these deals. He also received a commission after negotiating a property deal for the Renong Group.

Point development

"I introduced Mzi Khumalo, the Chairman of the Point Development Company, to Tan Sri Halim Saad, the Chairman of (Malaysian Hotel and property giant) Renong. We went to visit the (proposed) sites for the HIlton (sic) Hotel and the Point development. Saad made a commitment. It was like buying a house for him. He either said: 'I will take it,' or 'I will not take it.'

"I would indeed have had an interest. There was an understanding of the equity I would hold."

Nkobi group

"I was clearly impressed by the Malaysian model (of the economic empowerment of the previously disadvantaged). I wanted to create an empowerment company. There were no guidelines at the time. I built Nkobi along the lines of Renong, which I admired * 4.

"I first thought of giving the ANC shares in the company, but I had to respect Mbeki's view. But at the same time I knew about the ANC's need for funds. At one stage I considered a nominal shareholding for the party. I wrote down my thoughts on how to help the ANC become an independent entity."

(It was at this stage, he said, that he wrote a note, found by the Scorpions, indicating shares to go to the ANC of 20% and 2.5% of shares to go to one "JZ".)

"I tried to set up some form of empowerment structure. The shareholding as planned did not materialise. Zuma's shareholding did not materialise. He was my friend. I knew of his financial constraints. I was looking for a way to empower him. I tried to address Zuma's financial difficulties."

Why I paid more than R1m to ANC

"The ANC is very dear to me. The party (taught) me to put my brothers before myself."

Shaik said he had made more than R1 million in payments for the ANC during 1998 and 1999, which included paying for the rent of safe houses and vehicles to be used during the election in 1999.

How I taught Zuma about economics Shaik said that in July 1995 he had gone to Malaysia with Zuma, who was then KwaZulu-Natal economic affairs minister.

"He asked me to go with him. It was a party meeting for the ANC. I accompanied him as his economic adviser for KwaZulu- Natal. Zuma was looking at developing his own capacity to understand."

Judge Hilary Squires then asked: "But why did you go with him as the KZN adviser if it was a party meeting?"

"I was quite involved with Zuma. We discussed many things," Shaik said.

Workers College

"They asked to withdraw from the company board. I assumed their withdrawal meant that they were relinquishing their shareholding. I had handed the matter to my senior management to deal with it.

"I don't believe I need any other name (to boost my black economic empowerment credentials). I am from a previously disadvantaged background. I had black directors."

Why the money I paid to Zuma did not constitute bribes

When Shaik's counsel, Francois van Zyl SC, asked him to respond to allegations that he had paid Zuma bribes, he said: "That is untrue. Such an allegation clearly does not reflect the relationship I had with the deputy president."

He said he had given money to Zuma's late wife, Kate, twice because she could not get hold of the deputy president. "I did not tell him about it for a long time."

He also admitted to paying for a safe house for Zuma at a time of great political instability in KZN, between 1996 and 1997.

"Zuma was with me. We received a communication from the Department of Intelligence that Zuma's life was in danger. I arranged for a suitable safe house for him.

"I helped Zuma move into a flat in Mallington (sic - Malington) Place, which was near my house. He took the responsibility to pay. When the owner said that the rent had not been paid, I stood in as a guarantee - I had to pay it. Zuma later moved to another apartment.

"Actually, the ANC had to pay for both apartments, but when it became apparent that they did not, I paid it. I regarded it as a donation to the ANC. I believed the ANC had to carry the cost as Zuma's life was threatened by a party-political fight."

With acknowledgements to Estelle Ellis and The Mercury.

*1  Surely not. One of the commanders, Chief of Intelligence, but the Commander-in-Chief was one N.R. Mandela -was he not? (or his predecessor or successor - which was not (yet - heavan help us) - Jacob Gedleyihlekisa Zuma). Even Joe Modise was higher up the hierachy as Commander of MK. Fast and loose with the truth?

*2  A Mercedes ML430 (or as it a 320?), plus a E230 for da wife.

*3  Which they did, viz. inter alia Sechaba Photoscan vs Skotaville Press, plus a few oil companies.

*4  It appears an admiration not necessarily reciprocated.