Shaik ties with ANC sized up

Deputy President Jacob Zuma was not and is not a shareholder of Durban businessman Schabir Shaik's Nkobi group of companies.

This would be the evidence of Shaik, his senior counsel 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 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.

Van Zyl added that Shaik would say that Zuma was never a shareholder in the Nkobi group of companies.

But Van der Walt pointed out that his evidence was that Shaik considered giving shares to Zuma.

Yesterday morning, the focus briefly shifted to the proposed evidence of Glasgow-based Professor John Lennon who, owing to his work schedule, would 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.

But Shaik's legal team is opposing the application.

The first opposed application to lead evidence by satellite link was brought in the case of anti-apartheid activist Allan Boesak, which Boesak's legal team won.

It had dealt with the evidence of musician Paul Simon, who refused to come to South Africa to give evidence.

Now Judge Hilary Squires will have to consider the second such application.

He indicated that he would give his ruling tomorrow.

Lennon is willing to help the state, but is too busy to come to South Africa now.

His evidence will be about the dealings he had with Shaik and Zuma when he tried to establish an eco-tourism school in KwaZulu-Natal.

The trial continues, with Van der Walt still under cross-examination.

With acknowledgements to Estelle Ellis and the Daily News.