Jacob Zuma Faces Corruption and Money Laundering Charges; Shares in Cyber Security Firm Zscaler Soar on Market Debut
QUEST: South Africa's former President Jacob Zuma is to be charged with 16 counts of corruption and money laundering. It follows months after he resigned as president. Eleni Giokos is in Cape Town for us tonight. These are historical allegations concerning arms deals back in the 1990s --</s>ELENI GIOKOS, CNN AFRICA CORRESPONDENT: Yes --</s>QUEST: Was he in that</s>GIOKOS: I mean, this is what is so fascinating about it. We know that Jacob Zuma has been protected during his presidency, you know, over the last eight years or so. And these original charges were dropped in 2009, Richard, just before he became president. Handing over the presidency for such a long time and assigning the national prosecuting authority, coming in and saying, there's enough evidence, there's enough of a case to prosecute Jacob Zuma. Remember, this is a guy that we called the teflon president, surviving numerous new corruption scandals swirling around him again for such a long time. And this isn't the only thing that he's going to face down the line. You know, an investigation into the so-called state capture and the capture of Jacob Zuma is also currently underway, and it seems that this could be the nail in the coffin for him, Richard.</s>QUEST: OK, if convicted, one assumes, there will be a serious -- I mean, honestly, it's a big hit. There will be a serious time of imprisonment.</s>GIOKOS: Yes, exactly, I mean, this is what everyone has been saying that, you know, Jacob Zuma getting his day in court and getting his time in jail. But we're also talking about a man that has been so good at delay tactics and getting his defense team, you know, ready to fight as much as possible and delaying as much as possible so that it just carries on for, you know, two to --</s>QUEST: All right --</s>GIOKOS: Three to four to five years. But he's going to have money to do that.</s>QUEST: OK, now, let's look. The reaction in South Africa to this, and there was --</s>GIOKOS: Yes --</s>QUEST: And there was jubilation when he finally resigned and Cyril Ramaphosa took over. And --</s>GIOKOS: Yes --</s>QUEST: But you know, I guess is there an element of sharp fraudster that is now going to be prosecuted, or will there be an ANC hardcore that says no.</s>GIOKOS: Yes, I mean, look, the ANC also doesn't want to look weak. And it's stuck between a hard -- a rock and a hard place. Because at the end of the day, the ANC does have this black market against it because it allows Jacob Zuma to get away with so much for such a long time. At the other end, it's got to bring credibility back to the judiciary, and that's going to be just as important. With Jacob Zuma, has to pay for what he did and a lot of money has been lost in the process, Richard. I mean, just his defense, just defending Zuma within the presidency has cost South Africa around $2 million, and many say it could be, you know, just double that --</s>QUEST: Right --</s>GIOKOS: So lots of positive reaction and people on the ground are hoping to see the man behind bars.</s>QUEST: Pravin Gordhan was on the program earlier in the week, and we were talking --</s>GIOKOS: Yes --</s>QUEST: About a minister, and he was saying how difficult it's going to be dealing with the state --</s>GIOKOS: Yes --</s>QUEST: Capture. But is there a feeling that even though Ramaphosa was the number two, and Zuma, that -- this government is determined to clean up a mess that maybe they --</s>GIOKOS: Yes --</s>QUEST: Should have not let happen in the first place. But at least, they're getting on doing something about it --</s>GIOKOS: Yes, but you got a new different time, you've got Cyril Ramaphosa, you know, speaking -- you know, talking this whole -- saying that he's going to clean up, but it's something we've heard before. But remember, Richard, the people at the top within the important ministerial positions of people we've known before, we've seen them before. We're hoping that this is going to be a new dawn like the president says, a new ANC fighting corruption and it's got to be -- you know, we've got to see the proof. State capture, they've got to be results and consequences. You know, you spoke to Pravin Gordhan after -- you know, during that interview, I spoke to him afterwards and he said, Eleni, it's going to be really tough because we've got to get rid of people as well as finding where the money has gone and bringing it back to the country. So it's going to be a tough task, Richard, and everyone is watching, and it's not going to be easy and it's not going to happen quickly.</s>QUEST: Got it, Eleni, have a good weekend, thank you very much indeed.</s>GIOKOS: Yes.</s>QUEST: European markets, now take a look at the European markets with a strange start to the day in Frankfurt. Well, there were technical problems and the trading was delayed. The big mover of the day was next group, once known as ICAP, its shares were up 30 percent after it got a takeover offer from CME Group. Markets have closed the week on something of a high. Take a look and you'll see exactly how this market is closed. Strong impression, except that it don't quite show up until blip was right about 9:30 this morning. But we won't waste no time too long enough. Just look at that, it's a bit like the ounce, the way it did trade, now the day still manages to put on 72 points. It did go through 25,000 out once, it was around 130 odd points, a third of a point, we'll take that. Over the week as a whole, down 1.5 percent. Caterpillar was one of the biggest gainers, it's cutting 900 jobs in the United States and in Central America. Caterpillar was of course, also concerned there by the steel tariffs coming into the United States. The Nasdaq demand was sky high, and the first big tech IPO of the year. It's a cyber security company, it's called the Zscaler, and it rose 106 percent on its market debut. Now, I asked the company's chief executive, whether the enormous jump basically when a share price rises that much, you misprice the stock.</s>JAY CHAUDHRY, CHIEF EXECUTIVE OFFICER, ZSCALER: The thing with all that wise and data we had, we made the call and I think it was a good call, and I think the results really matter in the long run. And I believe that if we keep on delivering value, keep on solving</s>QUEST: All right, let's talk about the business you are in. Everybody agrees cyber security is the number one issue that really should be on the minds of not just the CIO and the CTO, but also the CEO. How --</s>CHAUDHRY: Yes --</s>QUEST: Woefully unprepared are we from major cyber attacks?</s>CHAUDHRY: I think for you fairly unprepared, I knew you'll say that because lots of these companies are getting hacked quite often. And what has happened is a cloud and mobility are driving business to move applications to the cloud and use it as I work at home every day. Because they're mobile, they're more productive, but security is stuck in the data center, and the lots of security companies, but they all sell old school technology that sits in the data center, trying to protect the data center which is no longer the center of the universe. That's why I started Zscaler to solve the security problem whereby security must move the cloud, and it should be purpose built and that's what we did.</s>QUEST: As we continue tonight, two executives, top executives of Nike leave within 24 hours, and it's to do with improper conduct, but what has gone on? We need to discover after the break.