/ 31 January 2006

Shaik to appeal R34m court blow

Convicted fraudster Schabir Shaik’s legal team will appeal a Durban High Court ruling on Tuesday that he must pay back R34-million to the state, said to be proceeds of crime, the South African Broadcasting Corporation reported.

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.

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 application sought a warrant giving the state control over Shaik’s assets in the arms-manufacturing company that profited from South Africa’s 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.

The Durban businessman 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 under 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