Describing corruption as a ”pervasive and insidious evil”, Durban High Court Judge Hillary Squires sentenced businessman Schabir Shaik to an effective 15-year jail term for fraud and corruption on Wednesday.
Largely rejecting arguments in mitigation of sentence, the judge found Shaik’s actions had been aimed at advancing his business interests through an association with Deputy President Jacob Zuma, possibly the country’s next leader.
”His corporate empire’s progress and prosperity was plainly linked to the possibility that Jacob Zuma would finally ascend to the highest political office.
”What was important to him was the achievement of a large, multicorporate business group … and the power that goes with that and close association with the greatest in the land.
”It is precisely in such circumstances that corruption works.”
Shaik gave Zuma ”a sustained level of support” designed to sustain a lifestyle the politician could not otherwise afford, Squires said.
This was an investment into Zuma’s political profile, from which Shaik expected to benefit.
”These were not payments to a low-salaried bureaucrat seduced into temptation,” he said.
The higher the status of the beneficiary, the judge added, the more serious the offence.
Shaik was convicted of one count of corruption for a generally corrupt relationship with Zuma, and one other for soliciting a bribe of R500 000 a year for the deputy president from French arms company Thomson-CSF in return for protection from a probe into South Africa’s multibillion-rand arms deal.
He was also found guilty of fraud for irregularly writing off loan accounts on the books of his Nkobi group of companies. Some of this money had been given to Zuma.
”I do not think I am overstating anything when I say that this phenomenon [of corruption] can truly be likened to a cancer eating away remorselessly at the fabric of corporate privity and extending its baleful effect into all aspects of administrative functions, whether state official or private-sector manager,” the judge said.
”If it is not checked, it becomes systemic. And the after-effects of systemic corruption can quite readily extend to the corrosion of any confidence in the integrity of anyone who has a duty to discharge, especially a duty to discharge to the public.”
This leads unavoidably to a disaffection of the populace.
”One can hopefully discount the prospect of it happening in this country, but it is that sort of increasing disaffection which leads and has led on other parts of our continent and elsewhere to coups d’état or the rise of populace leaders who, in turn, manipulate politics for even greater private benefit.”
Squires dismissed Shaik’s anti-apartheid ”struggle credentials”, saying what he had sought to achieve was exactly the same as the apartheid regime’s ”command of the economy” by a privileged few — exactly that which the struggle had sought to replace.
The judge sentenced Shaik to the minimum prescribed sentence of 15 years on each of the corruption counts.
He found mitigating circumstances for not imposing the same minimum penalty for the fraud charge, saying Shaik had not been the instigator. The crime had had no adverse effect on any other party.
Squires sentenced Shaik to three years’ imprisonment for fraud, and ordered that the three sentences run concurrently.
He described Shaik as a man with commendable vision, ambition and energy, but one who appears to have lost his moral compass and scruples.
The judge also imposed an array of fines on 10 companies in the stall of Shaik’s Nkobi group.
The judge set aside July 26 as the date for hearing an application by Shaik and the companies for leave to appeal.
Concluding sentencing proceedings, Squires said: ”This is the last step in a thousand-mile journey.”
Cosatu ‘respects decision’
The Congress of South African Trade Unions (Cosatu) said it respects the court’s decision to impose a 15-year jail term on Shaik.
”We definitely have to respect the court’s decision in the matter, noting that the accused has reserved his right to appeal,” spokesperson Paul Notyhawa said. ”We respect all the processes that have to take place.”
Notyhawa said the trade union federation has never contested the trial as far as Shaik was concerned.
”What we object to is that the judge erred in implicating a person who has not been part of the proceedings and has been denied his right to respond in a proper forum,” he said, referring to Zuma.
”Everybody must be given a chance to be heard before being vilified or sentenced in any way,” Notyhawa said.
The African National Congress Youth League (ANCYL) declined to comment on the sentence, and the South African Communist Party (SACP) could not be reached for its view.
While Cosatu, the ANCYL and the SACP have backed Zuma following Shaik’s conviction, the African National Congress has said it would need to study the judgement in full before taking any decisions regarding the deputy president.
ACDP, ID support sentence
The African Christian Democratic Party said the sentence will serve as a strong deterrent to others.
In a statement, ACDP justice spokesperson Steve Swart said public-sector corruption costs South Africa between R50-billion and R150-billion a year.
”This alone demonstrates that a hard line must be adopted when dealing with corruption. The ACDP supports the application of the minimum sentencing legislation by Judge Hillary Squires in the Schabir Shaik matter.
”We believe that the sentence imposed will serve as a strong deterrent to would-be criminals that bribery and corruption will not be tolerated in both public and private spheres.”
Swart also repeated his party’s call for Zuma to resign.
The Independent Democrats said it is ”delighted today that South Africa’s young democracy has come so far”.
”This sort of case during the apartheid regime would have never seen light of day,” said Patricia de Lille, leader of the ID.
De Lille added: ”I am proud that we have taken this as far as it could go and seen these perpetrators punished. The independence of the judiciary has proven itself admirably. It has shown how ineffectual and useless both Parliament and the executive have been in dealing with this major global incident. We were concerned how this would affect our global image if justice had not been done.
”South Africa has come out of this in a good light. Our judicial system has demonstrated its fair and balanced approach. Those who attempt to pervert it will be found and bought to justice. This is an extremely potent signal sent out to any corrupt business and government individuals.”