Publication: Business Report Issued: Date: 2008-01-17 Reporter: Ethel Hazelhurst Reporter:

OECD Paper Sheds Light on Zuma Trial

 

Publication 

Business Report

Date 2008-01-17
Reporter Ethel Hazelhurst
Web Link www.busrep.co.za



Johannesburg - A document released this week by the Organisation for Economic Co-operation and Development (OECD) highlights issues to be raised in the trial of ANC president Jacob Zuma.

Zuma will face 18 charges, including one of corruption relating to the controversial 1999 arms deal, when his trial starts in August.

In a consultation paper, the OECD reviews attempts by member countries to combat corruption of foreign public officials since its anticorruption convention was signed more than 10 years ago.

The organisation discusses the criminalisation of this type of bribery which, until 10 years ago, was seen as a normal part of business. "These activities were even encouraged indirectly by the availability of tax breaks for bribes in many countries," says the paper.

''However, all 37 signatories to the convention [which include non-OECD countries such as South Africa] have now criminalised bribery and disallowed tax deductions for bribery."

Relevant legislation was introduced in September 2000. France - home to arms dealer Thales, whose South African units, Thint and Thint Holdings (formerly Thomson-CSF Holdings), figured prominently in the trial of Zuma's financial adviser, Schabir Shaik, who was convicted of corruption and fraud in 2005.

Thales may not be the only foreign firm to find itself in trouble. However, many deals took place before the legislation came into force in the OECD countries.

Former ANC parliamentary whip Tony Yengeni was convicted in 2003 for receiving a large discount on a luxury car from DaimlerChrysler, which was bidding for an arms deal contract.

With acknowledgements to Ethel Hazelhurst and Business Report.