Reddy silent on Zuma funding

President Jacob Zuma's close friend and financial backer, businessman Vivian Reddy, yesterday refused to disclose the amount he had donated for developing Nkandla.

"My dealings with the president are private and not for public disclosure.

"I am not prepared to disclose the full extent of our personal relationship and finances other than what is in the public domain, and that is the R500000 that was mentioned in the Schabir Shaik trial," he said.

Evidence in Shaik's fraud and corruption trial showed that Reddy arranged a R90000 bond for Zuma in 2002, signed surety for the payment of the loan and paid the monthly instalments until 2004.

Reddy, who claims that Zuma repaid him, also made several payments to the contractors developing the first phase of Nkandla in 2000, when Zuma was cash-strapped.

At the time, the development cost R2.4-million, excluding VAT, but the price was later lowered to R1.3-million.

Shaik, Zuma's former financial adviser, told the court at his trial that he had nothing to do with Nkandla.

The convicted fraudster yesterday said he did not financially contribute to Nkandla and had wiped his hands of the development because, at the time, he had advised Zuma that several quotes from contractors were not in his best interest.

Shaik, who was released on medical parole after serving only 28 months of his 15-year sentence, said he was no longer in contact with Zuma and therefore preferred not to comment on the recent claim that R250-million of public funds had been spent on upgrading the president's homestead.

"I really have no comment as my dealings with Nkandla are old.

"I have not been in contact with the president. I wish him luck but I really have nothing to say about what has been going on," he said.

Last week, Zuma told parliament that he was still paying off the bond for the Nkandla homestead - but public records show no sign of a bond over Nkandla.

The Ingonyama Trust, which owns the land the home is built on, has no knowledge of a bond.

Presidential spokesman Mac Maharaj yesterday said he was not prepared to comment at this stage.