Businessman denies paying $196,000 bribes to South African deputy president

SOUTH AFRICAN: A South African millionaire businessman pleaded not guilty yesterday to bribing Deputy President Mr Jacob Zuma…

SOUTH AFRICAN: A South African millionaire businessman pleaded not guilty yesterday to bribing Deputy President Mr Jacob Zuma at a corruption trial which could hit Mr Zuma's hopes of taking over the country's top job.

Mr Schabir Shaik, former financial adviser to Mr Zuma, is accused of paying him "bribes" of 1.3 million rand ($196,000) between 1995 and 2000 and of being involved in corruption and fraud.

"I plead not guilty to all such charges presented to me," Mr Shaik told the Durban High Court as one of South Africa's biggest post-apartheid corruption trials got under way. Mr Shaik conceded making some payments to Mr Zuma's family but said these were friendly loans.

Mr Zuma, widely tipped as the likely successor to President Thabo Mbeki when his term ends in 2009, has not been charged and has denied any wrongdoing.

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Judge Hillary Squires reminded the court that Mr Zuma was not on trial and that it was unfair to reach conclusions based on the state's summary of its charges.

State prosecutors said last year they believed there was a "prima facie" case against Mr Zuma but not enough to bring charges.

Mr Zuma has angrily accused prosecutors of subjecting him to "trial by media", while his political allies have said the case is an attempt by his opponents to deny him a shot at becoming president.

The charge sheet says Mr Zuma and Mr Shaik were tied together by business interests that included payments allegedly arranged in exchange for Mr Zuma's help in winning a major arms contract for a French company. "We will prove this is how it was done," chief prosecutor Mr Billy Downer said.

Charges against the French company, Thint (Pty) Ltd., a South African subsidiary of French aerospace conglomerate Thales TCFP.PA, formerly called Thomson-CSF, were withdrawn on Monday in what prosecutors said was a "tactical" step.

Mr Shaik's trial is expected to stretch into next year with prosecutors lining up dozens of potential witnesses.

Some analysts have said a conviction could clear the way for charges against Mr Zuma, although prosecutors have said they have no plans to indict him.

Mr Zuma, one of the country's most popular politicians, appears to have weathered the storm thus far with his reputation intact.

A recent poll said 35 per cent of South Africans believed the corruption claims were a political effort to discredit him.

More importantly, the poll showed nine out of 10 members of the ruling African National Congress believe Zuma is innocent.