/ 22 February 2005

Mandela wanted to help with Zuma’s debt

Former president Nelson Mandela offered to help to ”extinguish” the debt of Deputy President Jacob Zuma, the Durban High Court heard on Tuesday.

Testifying at his fraud and corruption trial, Durban businessman Schabir Shaik said Mandela felt that Zuma’s financial problems were ”distracting him from his duties at the African National Congress”.

Shaik said Zuma then asked him to consolidate all his debt so Zuma could present it to Mandela.

Sipping on Berocca while in the witness box, Shaik said he made two kinds of loans to Zuma, one personal and the other on behalf of the ANC, for which he expected no repayment.

He said he kept a record of all payments from his company to Zuma and that he personally authorised it. Shaik borrowed the money from his company on behalf of Zuma and he was therefore personally responsible for repaying the debt, he said.

Shaik said his attorney, Anand Moodley, accompanied Zuma to see Mandela and that he (Shaik) had to pay for the trip.

Judge Hillary Squires asked why the ANC needed so many contributions, and why it could not finance the deputy president itself.

Shaik replied ”I wait for the day the ANC does become cash flush, milord, so they don’t have to be in such a precarious position.”

Zuma wanted to quit politics

Earlier on Tuesday, the court heart that Zuma wanted to leave politics because he couldn’t support his family with the salary he was earning when he was provincial minister for economic affairs and tourism in KwaZulu-Natal

”I advised Mr Zuma to stay in politics for the future of our children,” said Shaik.

Shaik said his relationship with Zuma was not only based on the fact that they were political comrades. They were friends as well.

He said Zuma found himself in ”a growing debt situation” because of the financial difficulties he had in providing for his children’s education and for his two wives.

Shaik said he wanted to assist Zuma so that he (Zuma) could fulfil his ambition of stabilising KwaZulu-Natal, where there was a lot of political unrest at the time.

”Did you never suggest to him that he reduce his standard of living?” asked the judge.

Shaik said there was ”great disparity” between what Zuma spent on his wives and children and what he spent on himself.

He said Zuma was not a man prone to ”Cartier watches, Armani perfumes and Hugo Boss suits”.

Shaik said Zuma earned a net salary of R12 500.

Zuma has four children from the late Kate Zuma, who were all born in exile, three from Minister of Foreign Affairs Nkosazana Dlamini-Zuma and two from his first wife.

”I found myself helping a friend with quite a sizeable family, which I believe brought him joy in his life,” said Shaik.

For the first time since the start of the trial in October, Shaik’s wife, Zuleikha, was also in court, sitting next to his brother Mo.

His brothers Chippy and Yunus and the person who might be his next spin doctor, Ranjeni Munusamy, were in court on Monday. — Sapa