/ 4 November 2004

Court sees Shaik-Zuma loan agreement

A document outlining a loan agreement between Deputy President Jacob Zuma and fraud and corruption accused Schabir Shaik was presented to the Durban High Court on Thursday.

Defence advocate Francois van Zyl presented the document to the court, which apparently makes provision for a R2-million revolving loan from Shaik to Zuma over five years.

This was the first indication of a loan agreement relating to money paid by Shaik and his company Nkobi Holdings to and on behalf of Zuma over a number of years.

The state alleges Shaik solicited a bribe of R500 000 per annum for Zuma in return for protection during a probe into arms deal irregularities.

Van Zyl said on Thursday the document was faxed to Shaik from Zuma’s office on August 23 this year — two months before the start of Shaik’s trial.

According to the advocate, the agreement was originally filed in the confidential section of declarations that parliamentarians are required to make.

He said the five-year period of the agreement had already expired by the time it was faxed to Shaik.

But Shaik had indicated to Van Zyl that the contract would remain in effect until a new one had been entered into. Van Zyl said Zuma had insisted that the agreement included interest at the prime rate plus two percent.

Shaik told Zuma that taking interest was against his beliefs as a Muslim, and that the interest would be given to charity.

The trial continues. – Sapa

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