Shaik
22 January 2009
The NPA would like to state that the settlement between the NPA and Mr
Schabir Shaik is a normal one in civil litigation where disputes are often
settled between the parties rather than litigated. The Asset Forfeiture Unit
(AFU) settles disputes regularly after weighing up its prospects of success in
court, the costs involved in the litigation and the extent to which it can
devote its limited resources to litigating other matters.
All such settlements have to be submitted to the head of the AFU for
authorisation and to ensure that they are justified in accordance with
procedures required by the Auditor-General. The Auditor-General also audits
such settlements every year.
In this matter, there was a relatively complex legal dispute about whether
the AFU could claim interest on the amount of the confiscation order, the
applicable interest rate and the date from which interest accrues.
The AFU considered the fact that issues have not been litigated before and
would therefore have resulted in further litigation which would have delayed
the process for as much as another two years. In the event, it was agreed to
settle the matter on the basis that the disputed interest would be shared
between the parties.
The effect was that the NPA received a total of R41 million, being the
amount of the original order of R33,9 million, plus about R7 million in
interest. Mr Shaik also received R7 million in interest, but only R5 million
was returned to him as R2 million was set off against legal expenses that are
still owed.
The NPA would like to state clearly that the details of the agreement were
always intended to be made public â the agreement provided that the parties
would agree on statements to be issued.
Although settlements in civil matters are often kept confidential, the AFU
has a policy of not doing so.
Enquiries:
Tlali Tlali
Cell: 082 333 3880
Issued by: National Prosecuting Authority
22 January 2009
