Shaik Sentenced to 15 Years in Jail |
Publication | Sapa |
Date |
2005-06-08 |
Issued |
Durban |
Reporter |
Mariette le Roux |
Describing corruption as a "pervasive and insidious evil", Durban High Court Judge Hilary Squires sentenced businessman Schabir Shaik to an effective 15-year jail term for fraud and corruption on Wednesday.
Largely rejecting arguments in mitigation of sentence, the judge found Shaik's actions had been aimed at advancing his business interests through an association with Deputy President Jacob Zuma, possibly the country's next leader.
His corporate empire's progress and prosperity was plainly linked to the possibility that Jacob Zuma would finally ascend to the highest political office.
What was important to him was the achievement of a large multi-corporate business group... and the power that goes with that and close association with the greatest in the land.
It is precisely in such circumstances that corruption works."
Shaik gave Zuma "a sustained level of support" designed to sustain a lifestyle the politician could not otherwise afford, Squires said.
His was an investment into Zuma's political profile, from which Shaik expected to benefit.
These were not payments to a low-salaried bureaucrat seduced into temptation," he said. The higher the status of the beneficiary, the judge added, the more serious the offence.
Shaik was convicted of one count of corruption for a generally corrupt relationship with Zuma, and one other for soliciting a bribe of R500 000 a year for the deputy president from French arms company Thomson-CSF in return for protection from a probe into South Africa's multi-billion rand arms deal.
He was also found guilty of fraud for irregularly writing off loan accounts on the books of his Nkobi group of companies. Some of this money had been given to Zuma.
I do not think I am overstating anything when I say that this phenomenon (of corruption) can truly be likened to a cancer eating away remorselessly at the fabric of corporate privity and extending its baleful effect into all aspects of administrative functions, whether state official or private sector manager," the judge said.
If it is not checked, it becomes systemic. And the after-effects of systemic corruption can quite readily extend to the corrosion of any confidence in the integrity of anyone who has a duty to discharge, especially a duty to discharge to the public."
This led unavoidably to a disaffection of the populace.
"One can hopefully discount the prospect of it happening in this country, but it is that sort of increasing disaffection which leads and has led on other parts of our continent and elsewhere to coups d'etat or the rise of populace leaders who in turn manipulate politics for even greater private benefit."
Squires dismissed Shaik's anti-apartheid "struggle credentials", saying what he had sought to achieve was exactly the same as the apartheid regime's "command of the economy" by a privileged few -- exactly that which the struggle had sought to replace.
The judge sentenced Shaik to the minimum prescribed sentence of 15 years on each of the corruption counts.
He found mitigating circumstances for not imposing the same minimum penalty for the fraud charge, saying Shaik had not been the instigator. The crime had had no adverse effect on any other party.
Squires sentenced Shaik to three years' imprisonment for fraud, and ordered that the three sentences run concurrently.
He described Shaik as a man with commendable vision, ambition and energy, but one who appears to have lost his moral compass and scruples.
The judge also imposed an array of fines on 10 companies in the stall of Shaik's Nkobi group.
The judge set aside July 26 as the date for hearing an application by Shaik and the companies for leave to appeal.
Concluding sentencing proceedings, Squires said: "This is the last step in a thousand mile journey *1."
With acknowledgements to Mariette le Roux and Sapa.
*1 This journey - we journey on.