Zuma trial 'no threat'

Johannesburg, 13 Mar 2008

There is "no reason for Altech shareholders to be concerned" that CE Craig Venter has been called to testify at ANC president Jacob Zuma's corruption trial.

Earlier this year, the National Prosecuting Authority (NPA) revealed Venter would be one of 218 state witnesses called to testify during Zuma's corruption, racketeering, fraud and money laundering trial.

In its "summary of substantial facts", put before the Natal High Court, the NPA explains that Altech was connected to co-accused Thint (formerly known as Thompson) and convicted fraudster Schabir Shaik.

The charges

According to the NPA, Zuma "intervened and assisted" Shaik, Shaik's Nkobi Group and the Thomson-CSF group to resolve a 1998 dispute that had arisen regarding Nkobi's participation in the acquisition of African Defence Systems (ADS).

At the time, prosecutors say Thomson-CSF became joint shareholders of ADS - previously known as Altech Defence Systems - alongside Altech. This deal saw Thompson acquire a 50%-plus-one share interest in the company. The following year, Altech transferred its interests to Thompson.

Zuma's intervention saw Nkobi gain an indirect 20% interest in ADS in September 1999.

The NPA's summary reveals that ADS was a significant vehicle for corruption from the arms deal.

"The ADS portion of the corvette contract was worth R1.3 billion, with R450 million coming directly to ADS and the balance going to subcontractors. [Parliament's standing committee for public accounts] report specifically raises concerns regarding the possible role played by 'influential parties' in determining the choice of subcontractors (such as ADS) by prime contractors," it says.

Taking the stand

Venter is expected to provide detail of the various ownership changes in ADS in the period leading up to the arms deal.

Referring to the multiple special investigations being initiated by Parliament, the ANC and individuals, Venter says he has no reason to believe Altech could be implicated in the arms deal.

"The matter facing the court happened after we were involved; our shareholders have nothing to worry about," he says.

Zuma is currently appearing in the Constitutional Court to argue that search and seizure warrants issued in 2005 were illegal.