The Durban High Court on Tuesday ruled that convicted fraudster Schabir Shaik must pay back R34-million to the state, said to be proceeds of crime.
Judge Hilary Squires also ordered Shaik to pay the cost of the application by the national director of public prosecutions as well as the cost of two counsel, South African Broadcasting Corporation radio news reported.
The state believes about R34-million was involved in Shaik’s ”generally corrupt relationship” with former deputy president Jacob Zuma.
The National Prosecuting Authority’s (NPA) application sought a warrant giving the state control over Shaik’s assets in the arms-manufacturing company that profited from the multibillion-rand
arms deal.
In the application filed with the court, the state requested that an alleged R250 000 bribe paid to Zuma by French arms manufacturer Thales also be recovered from Shaik.
NPA spokesperson Makhosini Nkosi said the authority is ”very pleased” with the judgement.
”It sends a very clear message that the Prevention of Organised Crime Act [Poca] is a very effective piece of legislation that can and will be used by the state to confiscate proceeds of crimes, no matter how substantial or minor they are.
”This is one of the first major asset-forfeiture cases where Poca has been tested by the courts and proven to be effective. The landmark judgement will assist in future similar asset-forfeiture cases as it has set a useful precedent,” said Nkosi.
The NPA will study the judgement in greater detail ”and, where necessary, appropriate action will be taken as a result of this judgement”.
”We reiterate our position that the NPA and its asset forfeiture unit took this matter to court in fulfilling its mandate in terms of our Constitution, the NPA Act and other relevant laws.
”We will continue to work on this and all other matters in the interest of justice, enforcing the laws of the republic without fear, favour of prejudice,” Nkosi said.
Shaik was found guilty in 2005 on two charges of corruption and one of fraud, and sentenced to an effective 15 years’ imprisonment. His appeal will be heard by the Supreme Court of Appeal later this year.
Shortly after Squires convicted Shaik, the asset forfeiture unit indicated it wanted to attach Shaik’s assets in accordance with the Organised Crime Prevention Act.
Squires agreed that the assets be placed in curatorship until he had heard arguments.
The state focused on four benefits it believes Shaik and his Nkobi Group obtained as a result of his relationship with Zuma. These are:
- shares to the value of R21-million in African Defence Systems (ADS);
- ADS dividends to the value of R12,7-million;
- R500 000 received by Nkobi Investments for the sale of its shares in Thint Holdings to Thales; and
- R250 000 paid by Thales to Kobitech as a ”bribe” for Zuma.
— Sapa, I-Net Bridge