Publication: Mail and Guardian Issued: Date: 2005-08-26 Reporter: Sam Sole Reporter:

Jacob Zuma's Other Sugar Daddies

 

Publication 

Mail and Guardian
Date

2005-08-26

Reporter

Sam Sole

Web Link

www.mg.co.za

 

The legal noose being used to lasso Jacob Zuma appears to be tightening as the Scorpions’ investigation widens to include Zuma benefactors other than Schabir Shaik -- centrally influential businessman Jürgen Kögl, Durban tycoon Vivian Reddy and prominent Mpumulanga businesswoman Nora Fakude-Nkuna.

The outline of the case emerges from the affidavit of lead Scorpions investigator Johan du Plooy, used to obtain court orders for last week’s wide-ranging search and seizure operations.

The affidavit shows the raids principally aimed to find:
The document shows a major leg of the prosecution strategy will be to attack Zuma’s claims that the monies from Shaik and others were loans.

“Zuma’s ability to repay any money he received is also an indication of whether the money was given and/or received corruptly,” states Du Plooy.

Du Plooy states that, according to Shaik’s trial evidence, his payments on Zuma’s behalf were continuing. Payments of about R1,3-million detailed in the trial were only those identified up to September 30 2002. “He [Shaik] refused to provide any details or documentation concerning the payments after 30 September.”

Du Plooy reveals Shaik resigned as financial adviser to Zuma only from July 11 this year, and transferred all Zuma’s documentation to Zuma’s attorney, Michael Hulley.

Kögl

Zuma’s largest benefactor after Shaik was Johannesburg businessman Kögl, an ex-Namibian and chief executive of empowerment company African Renaissance Holdings.

His lawyers said he was considering his legal options over last week’s searches and the allegations in Du Plooy’s affidavit.

According to Du Plooy, the investigation revealed that up to 2001, Kögl’s asset management company, Cay Nominees, paid R656 000 towards the bond on Zuma’s flat.

Du Plooy alleges that, before the Shaik trial, Kögl resisted a summons to be questioned about the source of these funds, saying Zuma was a client and the funds a loan: “No details of the terms of the loan were provided and nor was any loan agreement produced.”

He says bank statements obtained during the Shaik investigation confirmed Zuma made no repayments to Kögl.

The R656 000 identified by Du Plooy does not include R183 000 paid by Kögl’s Cay Nominees on August 14 2001 to settle Zuma’s debt on a Mercedes E230. This was identified in a forensic report presented at the Shaik trial.

But it is the source of the funds and Kögl’s possible connections with Thales that clearly fascinate the Scorpions.

Du Plooy states that Kögl had submitted an affidavit revealing that R1,1-million was deposited into a Cay Nominees account on August 14 2001 ­ the same day Kögl paid for Zuma’s car and 10 days before he paid R600 000 on Zuma’s bond.

According to Kögl’s affidavit, the R1,1-million inflow had nothing to do with Zuma, but was made by an unnamed investment company from an unnamed Emirates state to another client of Kögl in relation to a telecommunications deal. The affidavit also states that the R183 000 paid to Daimler Chrysler for Zuma’s car was done on behalf of another client.

The Scorpions want to know more about the origin of those funds. The investigator states that searches of Kögl’s premises are needed to establish whether they are linked to Thales.

He says a document obtained at the Thales offices and used in evidence at the Shaik trial suggests Kögl was an agent of Thales.

The document, an encrypted fax sent by Thales’ local executive, Alain Thetard, to his bosses in Paris, allegedly describes his meeting with former South African ambassador in Paris, Barbara Masekela, in May 1999.

Du Plooy says the fax indicates Kögl was “authorised to handle matters on behalf of Thomson CSF (Thales)”.

Thales

The offices and residence of Thales local executive Pierre Moynot, who testified for the defence at the Shaik trial, were also searched last week.

Du Plooy indicates the Scorpions would like to reopen the case against Thales, which was withdrawn following an agreement brokered by former prosecutions chief Bulelani Ngcuka, in a bid to obtain evidence from Thetard. Thetard has refused to come to South Africa to testify.

Du Plooy says current prosecutions boss Vusi Pikoli is still weighing possible charges against the company.

Reddy

The Durban businessman, long a Zuma family friend, says he was not searched last week, but voluntarily provided documents to the Scorpions under subpoena.

According to Du Plooy, Reddy said he had lent money to Zuma, mainly in the form of a R181 000 payment on the bond on his Nkandla homestead. “He was not able to provide any loan agreement to substantiate this. When last consulted in 2004 he had not received any repayments.”

Fakude-Nkuna

Nora Fakude-Nkuna, whose company employed Zuma’s nephew, contributed R140 000 to pay Eric Malengret, who was building Zuma’s Nkandla development. She alleged these were loans.


Zuma’s attorney, Michael Hulley, told the M&G he would lodge papers to challenge the legality of the raids on his office and Zuma’s homes in the high court. Julie Mahomed, who was also raided, would likely join the application.

Supporting those in power

Jürgen Kögl, an ex-Namibian, is managing director of prominent empowerment company African Renaissance Holdings and is extremely well-connected, both politically and with German business interests *1 in South Africa.

President Thabo Mbeki and his wife stayed in a Hillbrow flat owned by Kögl for a time in the early 1990s and in 1995 Kögl assisted Jacob Zuma in the process of buying a flat for his wife Kate in Killarney.

In 2003 Kögl told the Mail & Guardian his relationship with Zuma, Mbeki and the African National Congress was a long-standing one stretching back to before 1990: “There is nothing sinister about these relationships,” he said at the time.

“What happens is you provide support and find ways of making sure *2 these guys are able to get on with negotiations or with governing the country.”

Kögl reportedly played an important mediation role in bringing the right wing under General Constand Viljoen into the 1994 elections ­ together with Viljoen’s liberal brother Braam.

Kögl (49) is engaging and highly astute. He is friendly with former white opposition leader Frederick van Zyl Slabbert and the two once shared business interests in the Khula Consulting Group.

African Rennaissance Holdings (ARH), which was started in 1994, built up an impressive portfolio *3 of interests, including a stake in the Tsogo gambling empire, New Diamond Corporation, Finlar Foods, Exel Petrleum, a 25% share in Marconi Communications as well as 25% in Deutsche Telekom’s local subsidiary T-systems.

Kögl has good relationships with other German companies. When DaimlerChrysler tried to repossess Zuma’s Mercedes Benz E230 in 1999, Kögl interceded and copied his letters to MBSA chief executive Christoph Kopke. ARH director Seth Phalatse was an executive at BMW.

ARH directors and shareholders are seen as close to President Thabo Mbeki, rather than Zuma, but by helping Zuma, Kögl appears to have found himself on the wrong side of the Scorpions’ probe.

A Shaik trial document indicates he was linked to French arms firm Thomson-CSF. The encrypted fax, dated 17/05/99, stated: “(Ambassador to France) Mrs Masekela has confirmed that Jurgen Kögl was authorised to handle matters on behalf of Thomson-CSF and that he had all their confidence.” *4

“Barbara suggested I validate the relationship Jurgen Kögl holds at the highest political level ... (According to my information ­ originated from French intelligence ­ since the last months of 1998, J Kögl would not be as well connected as he was before).”

With acknowledgements to Sam Sole and the Mail & Guardian.

As usual, another excellent article from Mr Sole.

*1  Dem German frigates corvettes.

*2  And then there's the quid pro quo.

*3  But of course - that's the standard way of doing business with Africa - facilitate and then, because cash is a scarce commodity, get the quid in kind: shares, rights, concessions, commissions. Just ask Mr Jean-Yves Ollivier.

Riddle - what's the significance of Gestilac Gestion SA?

*4 And this sacred fax was a follow-up to a meeting with Masakela and Mbeki with Thomson-CSF in Paris.

Busted.