/ 5 November 2004

Zuma was involved in ‘peripheries’ of arms deal

Deputy President Jacob Zuma could have been involved in some ”peripheries” in the adjudication of South Africa’s arms deal, the Durban High Court heard on Friday.

This emerged during the cross-examination of KMPG forensic auditor Johan van der Walt in the fraud and corruption trial of Durban businessman Schabir Shaik.

Defence advocate Francois van Zyl, SC, asked Van der Walt if Zuma had been involved in the official adjudication of the arms deal.

Van der Walt said there were indications from investigations he had done and documents that Zuma was involved in the ”peripheries” of some of the projects relating to the arms deal.

Van der Walt has been in the witness box for the past 12 days to testify about his Scorpions-commissioned audit report on the financial relationship between Shaik and Zuma.

Shaik has pleaded not guilty to charges of fraud and corruption.

The state alleges that he solicited a R500 000-a-year bribe for Zuma in exchange for protection during a probe into the arms deal.

The state contends there was a ”generally corrupt” relationship between Zuma and Shaik. It alleges that Shaik and his Nkobi Holdings had paid at least R1,2-million to or on behalf of Zuma.

Van der Walt testified it was part of his mandate to see if there was truth in the allegations.

He, however, did not investigate the formal process himself — partly because he did not intend redoing the work of the auditor general.

On Thursday, he admitted that Zuma had repaid some of the money to Shaik. He also conceded that there could be three and not two acknowledgements of debt by Zuma to Shaik.

The defence also presented the court with a revolving-loan agreement document of R2-million signed between Zuma and Shaik.

According to the document, the loan period was five years and had already expired. The defence said Shaik deemed the agreement still valid until a new one could be signed.

Van Zyl said agreement was originally filed in the confidential section of declarations that parliamentarians have to make.

Cross-examination continues on Monday. — Sapa

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