Different sources paid for Nkandla – report

2012-11-21 07:36

Evidence in Schabir Shaik’s fraud and corruption trial has revealed where some of the money for President Jacob Zuma’s Nkandla home came from, according to a report.

According to Beeld newspaper, Shaik, Zuma’s former financial adviser, asked French weapons manufacturers for bribes, reportedly to help Zuma fund the development of his home.

During Shaik’s trial, which ended in 2005, KPMG’s forensic auditor Jan van der Walt testified that money was obtained from various third party sources to help Zuma pay a R1.3 million bill for a “cultural village”.

According to other testimony, Bohlabela Wheels, a subsidiary of Nora Fakude-Nkuma from Mpumalanga, made payments amounting to R140 000 to the company charged with construction at Nkandla.

Further evidence revealed that businessman Vivian Reddy stood surety for the sum of R400 000, which reportedly enabled Zuma to get a R900 000 housing loan from FNB.

During Shaik’s trial in the Durban High Court, it emerged that Reddy was also responsible for payment of the loan, and that he made payments during 2003 and 2004.

According to testimony, an FNB housing loan official reportedly said in an internal e-mail: “I’m convinced that the appropriate authorities will help us bend the rules slightly.”

Presidential spokesman Mac Maharaj declined to comment.

» Mail & Guardian reported today that FNB said it could not have given Zuma a bond.

"FNB does not grant home loans to individual applicants for housing developments that are carried out on tribal land, as the properties are not held under separate title. FNB cannot register a bond over the individual homes," Jan Kleynhans, chief executive of FNB Home Loans, told M&G. "Legally, people who currently live on land owned by a tribal authority have no claim to ownership of the land."

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