Publication: The Star Issued: Date: 2005-02-28 Reporter: Estelle Ellis

Shaik's Litany of Lies

 

Publication 

The Star

Date 2005-02-28

Reporter

Estelle Ellis

Web Link

www.thestar.co.za

 

Durban businessman Schabir Shaik concealed his financial relationship with Deputy President Jacob Zuma from former president Nelson Mandela and parliament.

He yesterday admitted this under cross-examination regarding his financial dealings with Zuma and also conceded he had lied repeatedly about his academic qualifications.

In a day of high drama in the fraud and corruption trial in the Durban High Court, spectators looked on horrified when Shaik tried to imitate Mandela's voice, saying that he was only going to say: "Here is that Shaik again."

The hearing started with Shaik admitting he had lied about having an MBA, studying at "prestigious universities", being a qualified engineer and being a published author.

'Downer: Mr Shaik, you have admitted that all your qualifications as stated on letterheads are false.

Shaik: Yes ...

Downer: It says here you have an MBA.

Shaik: I don't have an MBA.

Downer: I have a ... brochure here. Your CV is noted. It says "graduate of prestigious universities in Europe and the United States".

Shaik: I am not.

Downer: It says you are a qualified engineer.

Shaik: I am not.

Downer: It says you are a published author.

Shaik: It is also incorrect.'

In another twist, Shaik's brother Mo whispered to him theatrically from the back of the court, in a bid to stop him giving the state access to more of his financial records.

When asked by prosecutor Billy Downer SC why he had chosen to lie about his qualifications, Shaik said: "I don't want to explain how one develops a sense of confidence. My brothers are highly regarded and I felt that I missed the opportunity. I used it (false qualifications) to promote confidence and impress customers."

After this, Downer's questions became colder and Shaik's answers became more sarcastic.

At one stage Shaik replied: "I am smiling because this case is more about Zuma than it is about me."

And then the temper, for which many witnesses in the trial remembered Shaik, flared.

Downer was probing Shaik's assertion that Zuma would repay him from his pension, and discussing how much that would affect the deputy president's pension payout.

"Who is the struggling pensioner?" Shaik snarled at Downer. "I wish you to afford the deputy president of this country the respect he deserves."

Downer's line of questioning followed Shaik's reason for charging interest after a few years of helping Zuma financially when, as a practising Muslim, he had a moral problem about doing so.

Shaik: If we did not charge interest, he had to declare benefits to parliament.

Downer: Why did he not declare interest-free loans from you?

Shaik: He accepted me charging interest.

Downer: It seems that Zuma did not wish to reveal that you were paying him money.

Shaik: That is one view.

Shaik explained why, when he was asked to draw up a list of Zuma's debts for Mandela, he listed himself as a creditor under his family trust.

"I did not attend the meeting with Mandela or put down that Zuma owed me money. Mandela would just have said 'Shaik is back'. I did not want Mandela to know that Zuma owed me money."

Downer then probed the source of disagreement between Shaik and Mandela, which, according to Shaik, had to do with a dispute about a Malaysian model of economic empowerment, commonly referred to as crony capitalism.

"I knew that if Mandela saw my name he would not wish to fund the deputy president."

Shaik said Mandela had agreed to help Zuma under conditions which Zuma found unacceptable.

It was when Downer wanted to know exactly how much money Zuma owed Shaik that his brother Mo tried to stop him from saying too much.

Downer: Can you produce your records of the past few years to us?

Shaik: If the court so wishes.

Mo (whispering rather loudly from the back): No! No!

Shaik: No. I don't believe I am charged with it. I wish to take advice on this.

At times Shaik's answers sounded like a political speech.

Shaik: My belief is that Zuma sacrificed a national position to sort out the political carnage going on here (in KwaZulu Natal).

Downer: Let me cut you short. We heard this before.

Shaik: I benefited the ANC and the province. This was a place where angels feared to tread.

Downer: And what about Zuma?

Shaik: Let me finish.

Judge Hilary Squires: You can only finish if you would answer the question

Just before the end of the day's proceedings, a tired-looking Shaik walked into another ambush. They were discussing Shaik's part in the development of Zuma's traditional residence at Nkandla in KwaZulu Natal.

In his evidence-in-chief he had said that Zuma required him to "assist financially" with the project. In cross-examination, however, he said he was required only to give advice.

Downer: So what was your idea? That you had to give advice or financial assistance?

Shaik: I am very clear on that. I am also very tired. It is 4pm.

Judge Squires: But if you are very clear, just tell us.

Shaik: It could be both.

The trial continues.

With acknowledgements to Estelle Ellis and The Star.

One Side - 8 : Other Side - 0