Convicted fraudster Schabir Shaik ran almost every aspect of Jacob Zuma's
financial affairs for almost a decade.
A 16-page KPMG report that forms the cornerstone of the state's case against
Zuma for fraud and racketeering, paints a staggering picture of the complete
financial hold Shaik had over the newly elected president of the ANC.
Zuma will in August face a battery of charges in the Pietermaritzburg High
Court, including fraud, corruption, racketeering and money- laundering, for
allegedly using his high position in government to further the business
interests of Shaik and the French arms firm Thint in exchange for money.
The damning document shows Shaik's astonishing generosity. He funnelled a total
of R4 072 499 to Zuma, according to the indictment in his looming criminal
trial, in 783 separate payments between October 25 1995 and July 1 2005.
The Durban businessman continued to pay Zuma during his own fraud and corruption
trial, with the last payment going through in July 2005, two months after
Shaik's conviction.
Shaik's companies gave money to Zuma's ex- wives, paid his rent, supplied his
children with pocket money and forked out for his many debts. They even paid R10
to cover the cost of a "wash and vacuum" of his car.
Within days of Zuma being fired as deputy president of South Africa, the last
payment was made to him R393,80 to Absa on July 1 2005 for insurance on a
Toyota Tazz vehicle and he was also given R400 000 to pay off a debt.
Shaik, who now sits in Westville Prison, KwaZulu-Natal, also paid doctors,
pathologists and hospitals, traffic fines, electricity and water accounts, car
repayments, insurance and phone bills. Even housekeeping costs were covered
while Zuma was deputy president .
In June 2005, the Durban High Court sentenced Shaik to an effective 15 years in
jail and a number of his companies to an array of fines for fraud and
corruption. It was through many of these companies that Shaik paid hundreds of
thousands of rands to Zuma.
The traditional home where Zuma married his fourth wife, Nompumelelo Ntuli,
yesterday in a tightly guarded ceremony in Nkandla, northern KwaZulu-Natal, was
bankrolled with help from Shaik, his "financial adviser".
Cash was also paid to Zuma's ex-wives. The Minister of Foreign Affairs,
Nkosazana Dlamini-Zuma, who divorced Zuma in 1997, received R22 000. Kate Zuma,
who committed suicide on December 8 2000, received R23 400.
One of the payments to her was for R400 on July 24 1998. She received two
payments in a single day on August 31 1998 R1500 from the account of Pro Con
Africa and R7000 from the account of Schabir Shaik.
The payments to Zuma and his family ranged from a mere R10 to cover the cost of
a "wash and vacuum" of his car to a R300 000 cash deposit directly into his
personal bank account just three months before President Thabo Mbeki fired him
as his deputy.
Shaik paid Zuma's family travel and accommodation costs, including aircraft
charter (R14 200), a tab from the exclusive Twelve Apostles Hotel in Cape Town,
Avis car rental costs and tickets to fly on South African Airways, according to
a spreadsheet in the KPMG report.
He also coughed up R44 100 for " Zuma family travel costs" for a trip to Cuba
(tickets and allowance) on December 13 2002.
During Shaik's trial it emerged that, as MEC for Economic Affairs and Tourism in
KwaZulu- Natal between May 1994 and June 1999, Zuma earned about R20000 a month.
As deputy president of South Africa he earned a salary, including allowances, of
around R870 000 a year.
Yet, even after becoming deputy president, the schedule lists one payment of
R140,01 (April 21, 2000) from Shaik's firm Kobitech, under the heading "petrol
for Zuma's car". Five months later R25 in cash was doled out for a "mini-valet
for Zuma car" followed days later by R10 in cash for "wash and vacuum Zuma
car". More valet and petrol costs followed, including R150 paid for a traffic
fine.
Shaik even paid panel beaters in Durban for work done on a Mercedes-Benz listed
as a Zuma vehicle.
Zuma wore designer clothes thanks to his benefactor, who dished out tens of
thousands of rands to the exclusive Casanova boutique in Durban. In just two
weeks in August 2001, one of Shaik's companies paid the store R18 000 for Zuma's
purchases. A month later the store was paid another R18 000 and further
payments followed.
A large portion of the payments received by Zuma was made in cash. Vast sums
were also spent on educating Zuma's numerous children. Shaik's Nkobi Group
forked out money for school books and paid regular fees for Zuma's children to
attend Holy Family College, Sacred Heart College , Empangeni High School, the
University of Zululand , Westerford High, Pretoria Boys, Herschel School, St
Catherines , Cape Technikon and the International School of Cape Town. The
payments are listed under the heading "Zuma children education".
There were also numerous payments for "Zuma children allowance", separate
amounts to different children ranging from a few hundred rands to R5 340. One
child received R12 160 in just two months.
Regular monthly payments were made for a Hyundai Sonata and Mazda Etude listed
as "Zuma children vehicle costs".
The newly elected ANC president even has Shaik to thank for paying R21 000 to
the organisation to settle his outstanding party levies. Members of Parliament
are expected to pay a percentage of their salaries on top of their membership
fees to the party.
The indictment shows that Shaik was supposed to handle Zuma's tax returns and
his declaration to Parliament and the Cabinet's registers of interests.
Zuma now faces tax evasion charges for allegedly not declaring to the taxman the
income he received from Shaik and his other funders. He is also being rapped for
failing to fully declare his interests as the law requires of serving MPs and
members of the Cabinet.
With acknowledgements to Andre Jurgens and The Times.