Publication: Business Day Date: 2005-03-07 Reporter: Nicola Jenvey

State to Grill Shaik on 'New' Letter

 

Publication 

Business Day

Date

2005-03-07

Reporter

Nicola Jenvey

Web Link

www.bday.co.za

 

Fraud and corruption accused Schabir Shaik faces a second fraught week of cross- examination after another bout of stress-related illness brought an early adjournment to the Durban High Court on Friday.

It seems the strain of the case is taking its toll, as this is the second time Shaik has pleaded ill health to adjourn court early. During the closing days of the state’s case, Shaik was confined to bed for two days with high blood pressure and a respiratory tract infection.

Shaik, who has pleaded not guilty to two counts of corruption and one of fraud, will continue to face questions from state prosecutor Billy Downer about a letter allegedly written by then-KwaZulu-Natal economic affairs and tourism MEC Jacob Zuma in the mid-1990s to Renong chairman Tan Sri Halim Saad regarding the Durban Point redevelopment.

On Friday, Judge Hillary Squires ruled the state could re-open its case to submit the document located earlier in the week, on the grounds it was among the thousands of pages seized in the raid on Shaik’s company, Nkobi Holdings.

Defence advocate Francois van Zyl argued the state should have submitted the document earlier.

Renong was the Malaysia-based company initially involved in the multibillion-rand project that ground to a halt after the 1998 Asian economic crash.

In the letter Zuma supposedly responded to Saad’s request to find a suitable black economic empowerment partner for the waterfront project.

Zuma said he had known Shaik and businessman Mzi Khumalo for a long time because he had worked with them during the anti- apartheid struggle.

“I am indeed considered by both these persons as their political commissar and therefore in a position to comment objectively of their present status and involvements,” the letter said.

The state argues the new evidence confirms a generally corrupt relationship between Shaik and Zuma in which the businessman used his political connections to secure business deals.

Shaik denied any knowledge of the document on Friday, but admitted he was the only person at Nkobi involved in the Point development.

Downer also questioned Shaik about an alleged meeting held between himself, Zuma and Renong director David Wilson.

Wilson submitted two affidavits in which he testified about Zuma and Shaik’s relationship and that as provincial MEC, Zuma punted for Nkobi as the appropriate partner. Shaik denied the charges.

With acknowledgements to Nicola Jenvey and Business Day.