Schabir Shaik’s Nkobi Holdings incurred no costs related to sister company Prodiba in 1999, despite reflecting this in annual financial statements, the Durban High Court heard on Thursday.
The former general manager of Prodiba, Johann Vorster, is testifying in Shaik’s fraud and corruption trial. Prodiba was the company which was set up to tender for, and won, the contract to produce South Africa’s credit-card style driver’s licences.
Vorster said Nkobi was the empowerment component in the group and was responsible for providing staff.
He said Nkobi received R350 000 before the signing of the contract. In 1997, a further R50 000 was paid to the three shareholders in the company and in 1998 an additional R250 000 was paid.
Shaik wrote off R1,2-million as Prodiba development costs in his annual statements for Kobifin — a subsidiary of Nkobi Holdings — in the year ending February 1999. That write-off was subsequently reversed in 2003.
The state alleges that part of that money was used as a ”retainer” to secure the political influence of Deputy President Jacob Zuma.
Vorster said Shaik had told them he ”knew lots of political people and could exercise some influence”.
Earlier on Thursday morning, one of the auditors contracted to Nkobi, Ahmed Paruk said in hindsight the write-off could be regarded ”an error of principle”.
Paruk said he and his audit partner, Paul Gering , had agreed to the write-off after instructions by Shaik — who was the majority shareholder and sole director of Kobifin.
The write-off included three loan accounts in the name of Schabir Shaik, Clegton Investments and Floryn Investments.
State witness Professor John Lennon, who was flown in from Scotland, is expected to go into the witness box next. – Sapa