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Africa
How Schabir Shaik Controlled Jacob Zuma for 10 Years
By Andred Jurgens, Sunday Times (SA) 6/1/08
Jan 7, 2008 - 9:57:07 AM

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 R4072499 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 R400000 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 R300000 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 (R14200), 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 R44100 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 R18000 for Zuma’s purchases. A month later the store was paid another R18000 — 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 R5340. One child received R12160 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 R21000 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.

 



Source: Ocnus.net 2007