Publication: The Star Issued: Date: 2006-02-01 Reporter: Tania Broughton Reporter: Reporter:

Shaik to Fight to Retain His Money

 

Publication 

The Star
Date 2006-02-01

Reporter

 Tania Broughton

Web Link

www.thestar.co.za

 

Durban businessman Schabir Shaik is facing financial ruin *1 after being stripped of a substantial slice of his wealth by Durban High Court Judge Hilary Squires.

But his lawyer, Reeves Parsee, said yesterday his client would continue to fight for his money, even if it meant going to the Constitutional Court.

In a judgment handed down yesterday, Judge Squires ordered the confiscation of assets to the value of R34,4-million belonging to Shaik and three of his Nkobi companies.

These, he deemed, were the proceeds of the corrupt relationship Shaik was found to have had with now sacked deputy president Jacob Zuma.

These were his R21-million stake in African Defence Systems (secured through his shareholding in French arms company Thint), R12,7-million he had earned in dividends from these shares so far, and R500 000 paid to an Nkobi company as part of its acquisition of the shares in Thint.

Judge Squires found that all these transactions had come about because of intervention by Zuma that resulted in a partnership between Thint and Nkobi.

According to a report before the court during the asset forfeiture application, Shaik's personal wealth is just more than R40-million. Combined with his companies, this increases to about R70-million.

Apart from imposing a 15-year jail sentence for two counts of corruption and one of fraud in the criminal matter, Judge Squires also imposed fines totalling R4-million on several of Shaik's companies.

This, together with yesterday's forfeiture order, mounting legal costs and expensive appeals in the offing, means that almost his entire financial empire is at risk.

Parsee confirmed yesterday that the asset forfeiture matter would be taken on appeal.

The state has "preserved" about R28-million of Shaik's assets pending the outcome of the forfeiture application.

Asked if the state would ask Shaik for the R6-million shortfall pending appeal, court- appointed curator Trevor White, of PricewaterhouseCoopers, said Thint was currently negotiating with Shaik to buy his 25% stake in the company *2.

In his ruling yesterday, Judge Squires failed to make a confiscation order of R250 000, being the bribe from the French company to Zuma that was made via one of Shaik's companies.

Shaik's appeals are likely to be heard later this year.

With acknowledgements to Tania Broughton and The Star.


*1  Nonsense - R70 - R34 -R4 = R32 million or R40 - R34 -R = R2 million.

R2 million is a lot more than he started with and alot more than most South Africans. This is not financial ruin.

He still gets a few million per year for replicating our driver's licences every five years, thanks to Mac. And there's still the SA Army's giant GBADS programme, also thanks to Jake.

*2  What happens if Thint also gets found guilty and Adv Williw Hofmeyer then wants their 80% shareholding in ADS?

It's a sweet, suite deal.