Publication: Cape Times Issued: Date: 2008-02-29 Reporter:

Zuma Cheated Taxman, says State

 

Publication 

Cape Times

Date

2008-02-29

Web Link

www.capetimes.co.za



ANC President Jacob Zuma should not be allowed to quash "important" evidence implicating him in corruption, racketeering and multimillion-rand tax fraud, the state says.

The National Prosecuting Authority argues that one reason why he should not be allowed to do so are the "links" it says the disputed evidence shows between Zuma's former financial adviser and convicted fraudster, Schabir Shaik, and "political office-bearers".

In heads of argument filed on Thursday the state urged the Constitutional Court to deny Zuma the chance to challenge the Scorpions's raids of his homes and offices and his attorney's office in 2005.

The raids were carried out two months after Justice Hilary Squires convicted Shaik on two counts of corruption and one of fraud. The corruption charges related to Shaik's attempt to solicit a R500 000-a-year bribe from arms company Thint for Zuma.

Now the state claims the documents seized during the August raids have expanded the charges in its first aborted case against Zuma and could be used to show that:

Zuma "failed to disclose" to the SA Revenue Service or parliament that he received a total of 583 payments from Shaik.

Zuma failed to declare taxable income of about R2,7-million and evaded tax of about R1,16-million (The state claims investigations into these alleged tax offences are "continuing").

Shaik had paid Zuma over R4-million between 1995 and June 2005 - three times the amount that Shaik was convicted of.

Zuma intervened on Shaik's behalf, or Shaik used Zuma's name, 32 times - 28 more alleged interventions than those proved during Shaik's trial.

Zuma and Thint "participated in the conduct of (Shaik's Nkobi business) through a pattern of racketeering activity".

According to the state, the disputed documents also allowed Scorpions investigators to understand "Mr Zuma's financial position, including his reliance on third-party financial assistance to maintain his lifestyle".

Prosecutors claim the documents further shed "new light" on Shaik's acquisition of an interest in African Defence Systems. It was the state's case that Thint/Thomson wanted to pull out of the business partnership through which Shaik's Nkobi company secured the shares but had been deterred from doing so by Zuma.

It was on this basis that the state was able to seize the shares and their dividends as the "proceeds of crime".

This forfeiture is now the subject of a Constitutional Court appeal.

The state argues that the documents were important because they showed "why some of the old documents (used in Shaik's case) were more relevant than previously sought; confirm certain meetings; provide evidence of certain meetings; provide evidence of the outcome of certain meetings..."

According to prosecutors, Zuma and Thint's "only" purpose with these proceedings (to have the warrants that netted the new documents declared invalid), is to recover the evidence gathered under the disputed warrants in an attempt to deprive the state of the evidence in its prosecution of Zuma and Thint.

Zuma and Thint would have ample opportunity to argue against the admissibility of the disputed evidence when they went on trial, the state claimed.

Arguing for his constitutional rights to a fair trial, Zuma however claims the disputed warrants were "overbroad" and "vague", thus allowing "on the face of it, a general ransacking of the premises targeted" during the raids.

* This article was originally published on page 1 of The Cape Times on February 29, 2008

With acknowledgement to Cape Times.