Zuma's son says he will give away shares

BUSINESSMAN and son of President Jacob Zuma, Duduzane, has defended his role in black economic empowerment deals and promised to give away 70 percent of his stake in ArcelorMittal SA deal. "I am very pleased to announce that I have decided to forgo 70 percent of my proposed allocation and spread it among other South Africans who are needy and disadvantaged like I once was," Zuma said. He said his close business allies, the Gupta family, had also agreed to give 70 percent of their own allocation in the Amsa deal.

Zuma said he would set up a broad-based share scheme for disadvantaged South Africans to distribute shares in the controversial Amsa deal. He said his Mabengela Empowerment Trust was worth more than R1 billion. A share would go to widows and widowers, orphans and dependants of police who died in the line of duty since April 27 1994. Another would go to a bursary fund for under-privileged students studying at universities. "The inaugural award will go to the University of Johannesburg. We will particularly target universities in historically disadvantaged areas or universities with a large proportion of students from historically disadvantaged communities," Zuma said. A portion would go towards support of women in rural communities and pay for the education of orphans in all provinces.

Zuma has been chastised by Cosatu after he was announced as one of the beneficiaries in Amsa's black economic empowerment deal worth more than R9billion. Cosatu general secretary Zwelinzima Vavi said: "The open way in which prominent 'business figures', linked to top political leaders, deepen perceptions that there is blatantly abuse of power to concoct illegitimate business deals worth billions of rands."

Zuma defended his involvement in the deal, saying that it had nothing to do with the fact that his father was president of the country. "I would like to point out that I was in business long before my father was president," he said. "I am a businessman in my own right." He said he had "never done business with government" and that hard work and dedication had helped him establish himself in business.

Source: The Sowetan