Corruption accused Schabir Shaik denied yesterday that Deputy President Jacob Zuma had intervened in several business deals to assist him in particular, saying Zuma had intended to foster empowerment in the country.

In the second day of cross-examination at the Durban High Court, Shaik was confronted by a string of occasions in which Zuma had apparently intervened personally to secure business deals for Shaik’s companies.

State prosecutor Billy Downer cited as one example a meeting that took place in Paris at which Zuma had convinced officials from French arms company Thales that Shaik was an acceptable business partner.

At this point, in 1998, Shaik had believed that he had an agreement to team up with Thales in tendering for the corvette component of the arms deal. It then transpired that Thales was seeking other empowerment partners.

Following the Paris meeting, Shaik’s company, Nkobi, was reinstated as a partner.

Shaik testified that Zuma had attended the meeting as deputy president of the African National Congress *1 in order to explain SA’s empowerment situation.

Downer asked: “Why should he do that for you and not for someone else?”

“He would have done it for anyone who asked him *2,” Shaik replied.

Downer then asked Shaik why was it necessary to get the “approval of a politician for a business deal”.

Shaik said this had to do with the political climate in the country and because politicians provided the guidelines *3.

“What was the black empowerment problem with your company?” Downer asked.

Shaik replied that for one thing, it was necessary to explain that the black empowerment process should include all previously disadvantaged ethnic groups.

Downer then pointed to a letter concerning the Malaysian Renong group and a business deal to develop the Point area in Durban, in which Shaik pointed out his friendship with Zuma and expressed his irritation at being excluded from the deal.

His irritation resurfaced in court as he said the whole redevelopment process had been his idea *4. “They should name the Point development after me,” he said.

“We know that Zuma required Nkobi to be part of the Point development?” Downer asked.

“Yes that is quite right, I believe he insisted on several companies being involved,” Shaik said.

Downer also questioned Shaik at length about the inclusion of Zuma’s name in letters seeking business opportunities.

“Why did you wear it (your relationship with Zuma) like a badge?” Downer asked.

Shaik said that often he cited the fact that he was Zuma’s financial adviser in order to indicate that he had the authority to make the requests he was making in the letters concerned.

With acknowledgements to Tim Cohen and Business Day.

*1   The crucial point being that Shaik had effectively given 2,5% of the shares in Nkobi to the ANC via the special purpose vehicle called Floryn Investments (Pty) Ltd.

*2   Anyone, or only a Son of the Earth?

*3   No, politicians get laws established a priori through Parliament. Then the executive function implements the law and regulations that flow thereon; then the police services and judiciary enforce the law.

*4   Horse manure - anyone who has been windsurfing or diving or boating or suntanning at Vetchies Pier and had to drive down Point Road and through a multitude of prostitutes and Nigerian pimps and drug dealers to do so would have had an idea about redeveloping this (almost) priceless, but thoroughly run-down national treasure.