Publication: Sapa Issued: Bloemfontein Date: 2006-11-06 Reporter: Sapa Reporter:

Little Joy for Shaik and Companies in Confiscation Appeal

 

Publication 

Sapa
BC-COURT-SHAIK-SEIZURE

Issued

Bloemfontein
Date 2006-11-06

Reporter

Sapa

 

The Supreme Court of Appeal on Monday only dismissed in part an appeal of Durban businessman Schabir Shaik against an asset forfeiture order involving about R35 million granted by the Durban High Court.

The high court had ordered Shaik to pay about R35 million of his assets, said to be proceeds of crime, to the State.

On Monday, the Supreme Court of Appeal (SCA) ruled that the confiscation order was correctly granted in regard to two amounts.

"We find the appeal succeeds as regards the third amount," the judgment read.

The third amount is in regard to a sum of R499 688 paid to Nkobi Investments (Pty) Ltd (3rd defendant in the matter) as part of its acquisition of shares in Thint (Pty) Limited.

The State, through the National Director of Public Prosecutions, applied for the asset forfeiture order after Shaik's criminal trial last year.

The aim was the confiscation of the proceeds received by Shaik and four of his companies in regard to his conviction on the first corruption charge, which involved a "generally corrupt relationship" with former deputy president Jacob Zuma.

The Durban High Court granted the order.

The order required Shaik and two of his companies to pay the State three particular amounts.

The first was the value of the Nkobi shareholding in the company which was part of the consortium which won the corvette munitions contract. It was claimed to be about R21 018 000.

"As mentioned earlier, that shareholding was acquired as a result of Mr Shaik's corruptly obtained intervention by Mr Zuma,' SCA president Craig Howie said.

The second amount, R12 797 331, is in relation to dividends paid in respect of the shareholding.

The third amount, of which the appeal succeeded, is in regard to the value of Nkobi shareholding in another company.

With acknowledgement to Sapa.