Publication: Weekend Argus Issued: Date: 2005-08-20 Reporter: Michael Schmidt Reporter:

Zuma Raids may Lead to Fraud Charge

 

Publication 

Weekend Argus
Date

2005-08-20

Reporter

 Michael Schmidt

Web Link

www.capeargus.co.za

 

Fishing expedition': Scorpions could be looking for evidence of loan agreement

The Scorpions raid on the Office of the Presidency may have been driven by a National Prosecuting Authority plan to secure a third charge, one of fraud, against ousted deputy president Jacob Zuma.

Zuma already faces two charges of corruption.

Such a charge could be laid if the NPA proves that there is no evidence of a supposed original document laying out an alleged R2 million five-year "revolving-loan agreement" between Zuma and Schabir Shaik, the Durban businessman with whom Judge Hillary Squires said Zuma had a "generally corrupt relationship".

No physical evidence of the so-called original document was ever submitted by Shaik's defence during his marathon trial, and Squires in his April judgment against Shaik found that the copy of the agreement was "not what it purports to be".

Shaik had alleged in his trial that the agreement came into effect on May 16, 1999, and was lodged in the National Assembly's confidential register of members' assets held by the cabinet secretary in the office of Reverend Frank Chikane, Director General in the Presidency.

On Thursday, the Scorpions raided several premises linked to Zuma, including the presidency, and scrutinised documents and computer records, apparently searching for the register.

NPA spokesperson Makhosini Nkosi would not comment on the objectives of the raids, but Chikane said: "I had been advised by the National Director of Public Prosecutions, Advocate Vusi Pikoli, of the directorate's intention to conduct the search related to specific information they require."

Presidency spokesperson Murphy Morobe said last night that the Scorpions' search warrant was "couched in general terms" and that no specific mention of the document or the register was made.

On February 3, 2005, prosecutor Billy Downer wrote to Chikane asking for his assistance in determining if the loan agreement had been lodged in the register.

On February 16, Chikane replied, saying the agreement had never been lodged with the executive secretary of cabinet. Chikane wrote that the Executive Ethics Act "only requires members to declare their liabilities. There is no requirement for members to lodge loan agreements".

In February, Sapa reported from the trial that senior special investigator Johan du Plooy told the court that apart from a copy of the alleged agreement produced by the defence, there was no other evidence of the pact, in which interest was allegedly calculated at prime plus two percent.

Du Plooy said they had written to Speaker of the National Assembly Baleka Mbete in November 2004 as well as Justice Minister Brigitte Mabandla, requesting access to the register.

Mbete, who was on extended sick leave at the time, responded on January 24, saying that a copy of the agreement was "not contained in the confidential register of members' interests, save that a copy of the said loan agreement was disclosed to the Joint Committee on Ethics on a confidential basis by the deputy president".

Ever since the conviction of Shaik in April, the NPA was known to be gunning to add a fraud charge against Zuma, claiming that he had misrepresented his assets to parliament, and thus to the South African people, by pretending that the document he had given to the Joint Committee on Ethics reflected the true nature of his financial arrangement with Shaik that saw more than R1.2m go into Zuma's pocket.

Judge Squires sentenced Shaik to an effective 15 years behind bars, including three years on the fraud charge, saying the state had proven that the alleged loans to Zuma had been illegally written off the books of Shaik's group of companies, Nkobi Holdings.

Last month, Judge Squires gave Shaik leave to appeal against the fraud and one corruption charge. The appeal will probably only be heard in a year's time and Squires extended Shaik's R100 000 bail. But he only granted leave to appeal to Nkobi Holdings - and not Shaik - against the guilty verdict on the other corruption charge, that Shaik had channelled more than R1.2m to Zuma.

The Scorpions on Thursday also raided the offices of Shaik's personal attorney, Julie Mohammed, who allegedly drew up the "revolving loan agreement" that has yet to see the light of day.

Yesterday, Zuma's lawyer Michael Hulley, whose offices were among those raided by the Scorpions this week, said the NPA was merely on a "fishing expedition".

It seems likely, however, that they were angling for a very specific fish - in the form of evidence that the loan agreement never existed.

Cosatu, who on Wednesday hosted the launch of the "Friends of Jacob Zuma Trust", said last night that it welcomed statements by the General Council of the Bar and the Director of the South African Law Society "for their heroic stance of condemning the unwarranted search and seizure of material in the offices of Jacob Zuma's lawyer.

"We feel vindicated as we have publicly stated that the underhand tactics used by the Scorpions, and not condemned by the courts, is posing a great danger to both our democracy and the criminal justice system of our country".

After the launch, Durban businessman and trust chairman, Don Mkhwanazi, admitted that while the bulk of the money raised by the trust would go towards Zuma's defence, some of it would go towards keeping the former deputy president's personal financial ship afloat.

Mkhwanazi cited travel expenses "to and from the court" as an example of one area in which funds from the trust would be able assist.

With acknowledgements to Michael Schmidt and the Weekend Argus.