Shaik tells of R1.2m write-off

2005-03-01 20:20

Durban - Fraud-and-corruption accused Schabir Shaik said on Tuesday if he had known it was incorrect, he would not have permitted the write-off of R1.2 million as development costs in the 1999 annual financial statements of his Nkobi Holdings.

"I would not have put my company at risk by that action," said Shaik in Durban High Court, explaining that the underlying investments in his company "runs into several millions".

Under the cross-examination of senior prosecutor Billy Downer, Shaik said that when he realised that "a fundamental error" had occurred in his books, he approached senior counsel Nirmal Singh, who had advised him that a reversal was in order.

"If you found anything wrong, were you in the position to rectify it?" asked Downer.

"Absolutely, absolutely" said Shaik. He also conceded that his former accountant, Celia Bester, was right when she pointed out that the write-off was incorrect.

Was waiting for dividends

Downer asked him if he knew that his loan account would have been "extinguished" by the write-off and if not, was he able to pay the loans to his company out of his own pocket.

Shaik said he would not have been able to pay back the money immediately and that he chose to wait for dividends to be paid before settling the debt.

The State claims the R1.2m was paid to deputy president Jacob Zuma and, in exchange, Shaik used Zuma's influence to advance his business interests.

Downer asked why Zuma had stepped in to help Shaik when he had problems with French arms manufacturer Thomson CSF and with Deva Poonoosamy when Shaik wanted to be appointed the black empowerment partner in a tourism school in KwaZulu-Natal.

Shaik said one of the reasons Zuma had helped him was because Thomson CSF had problems in understanding black economic empowerment (BEE).

"I don't believe there is any exclusivity between Zuma and me," said Shaik.

He said Zuma had a duty to any empowerment company. He added BEE should benefit all black people in South Africa, as well as disadvantaged whites.

Shaik admitted he overstated the length of his relationship with Zuma in correspondence.

Some of his documents indicated he and Zuma had been working together for more than 25 years.

However in his plea explanation and evidence-in-chief Shaik told the court that he and Zuma had met only in the 1980s.

Had paid back Zuma's money

Asked why the documents indicated otherwise, Shaik said his brothers and father had known Zuma longer than he had and conceded the dates were wrong.

Shaik was asked if he had paid back an outstanding R400 000 from R900 000 he had taken from Zuma's account which was supposed to go to Development Africa.

He said he had paid the money in cheques to Zweli Mkhize, who was trustee of the organisation at the time.

"I believe Zweli Mkhize is happy to testify to that effect..." said Shaik.

Mkhize is MEC for economic affairs in KZN.

The trial continues.

- SAPA