Publication: Cape Times Issued: Date: 2005-03-08 Reporter: Wendy Jasson da Costa Reporter:

Shaik Letters to Arms Firm 'Do Not Refer to Trust Fund'

 

Publication 

Cape Times

Date

2005-03-08

Reporter

Wendy Jasson da Costa

Web Link

www.capetimes.co.za

 

Zuma may yet testify

It is not clear whether Deputy President Jacob Zuma will be called to testify on behalf of his friend and financial adviser, Schabir Shaik, although the prospect has been raised by prosecutor Billy Downer, SC.

Downer told the court yesterday that in case the deputy president was called to testify, he wanted to ask Shaik what Zuma would say about certain matters.

If Shaik's evidence did not tally with Zuma's, he would have to recall Shaik - so it was permissible to question Shaik about Zuma, he argued.

"There's no point in proceeding with something that may be entirely groundless," said Justice Hilary Squires.

Yesterday's cross-examination dealt with allegations that Shaik solicited a R500 000-a-year bribe for Zuma from French arms company Thomson-CSF.

Through their shareholdings in African Defence Systems, Shaik's Nkobi Holdings and Thomson-CSF won a contract to provide the information management systems for the corvettes ordered for the navy.

Shaik has told the court he learned of possible arms deal irregularities through the press.

He has acknowledged that he, Zuma and Thomson-CSF's director in SA, Alain Thetard, met here in March 2000 to discuss a donation for Zuma's Education Trust Fund. The state says it was at this meeting that the question of a bribe was raised.

Downer noted that in all his correspondence with the French and two-year pursuit of the donation, Shaik had not mentioned the trust fund.

"The nature and sensitivity of the matter had not been resolved in the minds of the French," Shaik said.

Downer asked why Shaik had given the French only two brochures about the trust and no other information and why Thetard and the head of Thomson-CSF in France, J P Perrier, had not been introduced to the board of trustees.

Shaik: "I could... deal with the French on my own."

Downer introduced a service provider agreement Shaik allegedly had with Thomson-CSF. He asked why, if Shaik had not received money from Thomson-CSF for Zuma, he had pursued the company for money under the service provider deal.

Shaik: "One was a business-related matter, the other was a non-business matter."

Shaik owed Development Africa R900 000, taken from Zuma's account. Shaik said he could repay it by selling investments or being paid under a service provider deal with Thomson-CSF. The state says the R250 000 he received under this deal was bribe money for Zuma.

With acknowledgements to Wendy Jasson da Costa and the Cape Times.