Newspaper headlines have suggested that Schabir Shaik, the Durban businessman who has been convicted in one of the highest-profile cases in the country’s history, has amassed R30-million in assets. This is the figure that the Asset Forfeiture Unit has indicated it will attach.
But, says a spokesperson for the National Prosecuting Authority (NPA), the R30-million relates only to Shaik’s business activities in respect of his convictions. Nkobi Holdings, under-stood to be Shaik’s principal investment, for example, is not affected by the seizure request.
Head of the Asset Forfeiture Unit, Willie Hofmeyr, says the law permits the NPA to confiscate only assets directly relating to the corruption and fraud charges. “The Act [NPA Act] does not permit us to go after other assets as they are not seen as tainted.”
The NPA’s restraint order, filed in court on June 3, requested that Nkobi Investments’s 25% share, valued at R22,5-million, in French arms company Thint should be handed over to appointed curator bonis Trevor White of PricewaterhouseCoopers. The balance of the R30-million is made up of R250 000 cash and R7,25-million in other assets, to be specified by the defendants.
But the 25% share in Thint has been pledged to Thompson CSF International Africa Limited (TIAL) and placed under escrow until a loan of R7,464-million plus interest is repaid. TIAL made the loan to Nkobi Investments for investment in Thint.
An outstanding amount, in excess of R1-million, is still owing on the loan and, if it is paid by the end of September, the shares will be released to the curator bonis.
White has confirmed that a cheque for R250 000 was received on June 10 and has been banked in an interest-bearing account. It relates to the amount that was paid by Thompson CSF to Nkobi as a bribe.
Assets to the value of R7,25-million that were to be surrended by Nkobi have not been identified as yet. A share certificate for 500 shares in Cellsaf has been refused as it has been pledged as security for a loan as part of a Cellsaf sales transaction.
The confiscation hearing, set for later this month, is where the exact amounts of benefits relating to Shaik’s fraud and corruption convictions will be disputed.