| Publication |
Mail & Guardian |
| Date | 2012-12-07 |
| Reporter |
Sam Sole, Stefaans Brümmer |
| Web link | www.mg.co.za |
Here are the people the auditors' report
identifies as having paid more than R7-million
to benefit Jacob Zuma between 1995 and 2006.
Julie Mahomed – R431 000
Julekha "Julie" Mahomed was Zuma's lawyer. It
was she who testified in Shaik's trial about his
payments to Zuma being covered by an
interest-bearing
"revolving loan agreement*1".
The KPMG report reveals that among the documents
the Scorpions had seized was one that suggested
someone was considering using
Mahomed's trust account to transfer money from
France.
A hand-drawn diagram on the back of an unrelated
October 2000 account from the University of
Zululand reflected the following plan: "R1m
from Paris to Mauritius. From Mauritius
to A Moodley Trust a/c and
then to Juli's Trust
a/c."
Anand Moodley was Shaik's attorney and, KPMG
says, it is possible that "Juli" referred to
Mahomed.
On July 12 2004 Zuma issued a cheque in favour
of his Nkandla builder, Eric Malengret, for R120
000.
KPMG reveals that a credit transfer of R120 000
was made into Zuma's account the same day. The
funds originated
from the J Mahomed Attorneys trust account. The
source of the funds is unknown.
On August 12 2004 Zuma issued a cheque in
favour of Malengret for R30 000.
Two credits, totalling R30 000, were transferred
into Zuma's account the same day, R20 000 from
Mahomed's firm's trust account and R10 000 from
its business account.
The sources of the funds are unknown, says KPMG.
It appears that Zuma
may also have benefited – through Mahomed's
trust account – from another arms deal company,
Ferrostaal, which led the consortium that won
the submarine contract.
On July 6 2005, a R281 000 cheque, drawn
on her trust account, was deposited into a
Wesbank account to make up Zuma's arrear
payments on a Mitsubishi Pajero 4x4.
According to KPMG, it appears the funds came to
Mahomed through three similar deposits into
another of her accounts, two of which bore the
reference "Ferroman".
Ferroman was a local Ferrostaal subsidiary with
a black economic empowerment component.
Mahomed herself was a director of Ferroman,
which was intended to be a vehicle for pursuing
Ferrostaal's offset obligations arising out of
the submarine deal.
Vivian Reddy – R324 110
Durban businessperson Vivian Reddy appears to
have become involved in funding Zuma's Nkandla
development when financial pressures made it
difficult for Shaik's companies to pay.
On November 3 2000, Reddy lent R50 000 to Zuma's
builder, Eric Malengret.
KPMG notes: "We understand that Reddy indicated
that the funds had been advanced to Malengret as
a result of cashflow problems Malengret
experienced due to the development for Zuma and
due to Zuma's tardiness in reimbursing him for
work completed."
Reddy later also stepped in to assist Zuma with
arranging a home loan from First National Bank.
According to KPMG, Zuma applied to FNB for a
home loan on June 7 2002 in the amount of R650
000. "V Reddy" was indicated as having accepted
responsibility to pay the monthly instalments.
A fortnight later, Reddy also signed a
suretyship, binding himself for up to R400 000
should Zuma default.
FNB confirmed to Reddy on December 12 that the
bond over the property had been registered in
the amount of R900 000.
The loan was repayable over 20 years at R12 117
a month – and it was noted that the debit order
would be raised against Reddy's cheque account.
KPMG found Reddy serviced the bond account until
May 25 2005, when Zuma took over the payments.
The value of the payments until then was R274
110.
On April 8 2006, the outstanding balance on the
bond was R854 229.
Zuma did attempt to begin to repay Reddy in 2004
– but he needed help (See Khulubuse Zuma).
Reddy has said publicly that he has been repaid
in full.
In response to the Nkandla public- works
scandal, Zuma recently told Parliament: "I
engaged the banks and I am still paying a bond
on the first phase of my home."
It seems likely that the president was referring
to the loan from FNB.
Khulubuse Zuma – R180 000
On October 30 2004, Jacob Zuma issued a cheque
in favour of Reddy for R164 500 to repay the
latter for servicing Zuma's bond repayments on
the Nkandla development.
The bank returned the cheque as unpaid, because
Zuma's account was already R163 170 in the red.
In February 2005, KPMG's report says, Zuma's now
controversial businessperson nephew came to his
aid.
Zuma's cheque account revealed a R180 000
deposit on February 26 2005 with the reference
"Khulubuse".
"Before this deposit," KPMG says, "Zuma's
account indicated an overdraft balance of R91
704. The deposit slip indicates that a cheque in
the name of KC Zuma was deposited. We understand
that the cheque was drawn on the account of
Khulubuse Clive Zuma."
Thereafter, Zuma issued seven post-dated cheques
to Reddy, totalling R180 000.
Khulubuse's ventures into big business –
especially his involvement in Aurora Empowerment
Systems' disastrous takeover of gold mines on
the Rand – have been controversial.
His early support
for Zuma begs the question whether this past
financial relationship generated any degree of
presidential access or protection.
Nora Fakude-Nkuna – R174 200
When Parliament's ethics committee investigated
Zuma's alleged non-declaration of interests in
2003, it was presented with evidence that
Bohlabela Wheels, the company of Nelspruit
businessperson Nora Fakude-Nkuna, a longtime
friend of Zuma, had paid the architects' fees
for the then deputy president's Nkandla estate.
The invoice for R34 200 was dated March 2000.
In reply, Zuma and his nephew Kusa Raymond Zuma,
who worked for Bohlabelo Wheels, said Kusa was
responsible for the payment and had organised it
with Fakude-Nkuna without Zuma's knowledge.
KPMG shows further payments:
August 14 2000: "KR Zuma" deposits R100
000 into the account of Zuma's Nkandla builder,
Malengret. But the deposit comprises two cheques
drawn on Bohlabela Wheels and one from
Fakude-Nkuna.
October 4 2000: "KR Zuma" makes another
cheque deposit of R40 000 and the details
reflected in the deposit slip indicate that the
drawer's name was Bohlabela Wheels.
Replying to questions on these payments in the
2003 Parliamentary investigation, Zuma
"indicated that there was a verbal agreement
between him and Fukude and that it was not an
interest-free loan", says KPMG.
Special Focus
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behind this story
With acknowledgement to
Sam Sole,
Stefaans Brümmer and Mail & Guardian.
*1
She create such a document after the fact on her
laptop computer.
No signed loan agreement could ever be found.
Comrade Juli is a nominee director for occult
shareholders of various front companies.