Publication: Business Day Date: 2005-06-01 Reporter: Sapa

Zuma was Ready to Assist Shaik - Squires

 

Publication 

Business Day

Date

2005-06-01

Reporter

Sapa

Web Link

www.bday.co.za

 

There was clear evidence of a readiness on the part of Deputy President Jacob Zuma to intervene to the benefit of the business interests of his financial adviser Schabir Shaik, Judge Hillary Squires said in the Durban High Court today.

Giving judgment in Shaik's fraud and corruption trial, Squires said: "Zuma did indeed intervene to try and assist".

He mentioned several instances where the deputy president got involved in Shaik's attempts to secure business contracts.

"There is evidence of Shaik's readiness to turn to Zuma for help, and of Zuma's readiness to give it," the judge said.

Shaik has pleaded not guilty to two charges of corruption and one of fraud - all related to alleged irregular financial dealings involving Zuma.

Squires said it was clear that the only assistance Zuma could provide was using his political office. He was in no position to lend Shaik any money.

What had to be determined, however, was whether alleged payments made by Shaik to Zuma could be linked to the assistance the deputy president provided.

"The essential question is the existence of a causal link between the payments and the assistance. Were these the results Shaik were after?" the judge said.

Squires questioned the true nature of Shaik's friendship with Zuma.

"Genuine friendship would not have resorted to such blatant advertising," Squires said.

He pointed out the instances when Shaik "emblazoned" the unofficial title of financial adviser and economic adviser to Zuma on letterheads and business cards.

Squires also said how Shaik invited potential joint venture partners with his company Nkobi to meet Zuma.

Squires said according to Shaik's evidence his relationship with Zuma was "fortified by a sense of loyalty and camaraderie" which started during the days of the anti-apartheid struggle.

Summing up the evidence, Squires said Zuma had told Shaik he had considered leaving politics because of his "precarious financial position".

The judge said Shaik did not want this to happen but instead of stabilising and managing Zuma's financial affairs, Shaik continued to make it possible for Zuma to live beyond his means.

This happened at the time when the Nkobi Group - Shaik's companies - had not yet started paying dividends and could not afford it.

This, Squires said, "flies in the face of ordinary common sense".

He said Zuma could not repay Shaik with money but paid him with the use of his name.

He said Shaik must have foreseen that if he made payments to and on behalf of Zuma, that Zuma would respond.

"He embarked on a never ending series of payments... because he realised the possible advantages to provide the means to remain in Zuma's good books and retain a lifestyle beyond what he (Zuma) could afford."

Meanwhile,by teatime it was clear Squires' voice was increasingly under strain.

Before the start of the day's proceedings, his secretary Margaret Parker said there was a possibility to the judgment might run into tomorrow morning.

With acknowledgements to Sapa and the Business Day.