Shaik's driver's licences contract under scrutiny

Published Jun 8, 2005

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Durban - The R750 million contract awarded to the Prodiba consortium, which includes Nkobi Holdings' subsidiary Kobitech, to make credit card driver's licences will come under scrutiny by the department of transport in light of the judgment against Schabir Shaik and the move by the Asset Forfeiture Unit to take control of R30 million of his assets.

Last week Judge Hilary Squires convicted Shaik of corruption and fraud. Kobitech was found guilty of fraud, corruption and money laundering.

It is expected that the sentencing of Shaik either today or tomorrow will include a hefty fine for the companies involved that is likely to leave little on which they will be able to survive commercially.

Willy Hofmeyer, the head of the Asset Forfeiture Unit, said: "The Asset Forfeiture Unit intends confiscating R30 million over and above any fine imposed by the court."

Collen Msibi, the department of transport's spokesperson, said: "The department has not received a copy of the judgment and this is expected in the next couple of days.

"Once received, the judgment will have to be analysed in order to assess its implications for the department.

"Until such time that the department has studied the judgment, we remain confident that the contract will be fulfilled. The analysis of the judgment will also determine the course of action to be taken, if any, guided by the state tender board regulations and the terms and conditions of the contract," Msibi said.

The contract to make credit card driver's licences was awarded to the Prodiba consortium in February 1997.

Consortium members are Kobitech, Face Technologies and Thales.

Neither Face Technologies nor Nkobi Holdings returned calls for comment on the implication of Shaik's conviction on the contract.

The credit card driver's licence contract included a provision for it to be extended for a further five years, if the contractor complied with certain conditions and delivery requirements during the first production phase.

In October 2003 the department, with the approval of the state tender board, extended the contract.

The contract would now expire in March 2009 and would go out on tender once it had expired. In total, the value of the contract was R750 million, Msibi said.

It was previously reported that in the first charge Shaik was found to have cultivated and sustained a generally corrupt patronage of deputy president Jacob Zuma.

Shaik and nine of his companies, which made payments to Zuma, were convicted of this crime.

These were Nkobi Holdings, Nkobi Investments, Kobifin, Kobitech, Proconsult, Pro Con Africa, Kobitech Transport, Clegton and Floryn Investments.

Shaik and his companies Kobifin, Pro Con, Clegton and Floryn Investments were convicted of fraud.

Kobifin and Kobitech were found guilty of money laundering as they were party to an agreement to hide the payment of a bribe.

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