Sept. 12 (Bloomberg) -- South Africa's High Court ruled that fraud and corruption charges against Jacob Zuma, leader of the country's ruling African National Congress, were invalid and said they may have been politically motivated.

The state should have given Zuma a hearing before reinstating the charges on Dec. 28 last year, Judge Chris Nicholson in the eastern town of Pietermaritzburg said today. Zuma, 66, is accused of taking 4.07 million rand ($493,000) in bribes from arms dealers.

Zuma says the case aims to stop him from becoming president after elections next year and asked the court to rule the charges invalid because he was denied the right to state his case. Prosecutors reinstated the charges in December, 10 days after Zuma ousted President Thabo Mbeki as ruling party leader. He has been under investigation since 2001.

``I'm not convinced the applicant was not correct in averring political interference in his prosecution,'' Nicholson said. Prosecutors ``should have taken representations from the applicant'' before recharging him.

Today's ruling may not be the end of the case.

This ``has nothing to with the guilt or otherwise of the applicant,'' Nicholson said. ``It deals only with a procedural point relating to his right to make representations. The state is at liberty to proceed against the applicant'' once he is given a hearing.

`Apply Our Minds'

Tlali Tlali, a spokesman for the National Prosecuting Authority declined to comment on whether new charges would be filed.

``We need to apply our minds if there are legal options to explore,'' he said.

Mbeki fired Zuma as his deputy in 2005 after allegations surfaced that Zuma's financial adviser tried to solicit a bribe for him. The adviser, Schabir Shaik, was convicted of bribing Zuma and sentenced to 15 years in jail.

The ANC, which dominates South African politics and has nominated Zuma as its presidential candidate in next year's election, wants the case to be scrapped.

Zuma's lawyers have said they intended filing a new lawsuit in November, aimed at having the case permanently dismissed on the grounds that his rights to a fair trial have been compromised. The trial was provisionally due to begin on Dec. 8.

Ammunition

``Given the verdict, it will make future prosecution difficult,'' Mike Davies, an analyst at Eurasia Group in London, said in a telephone interview. ``It provides ammunition to those who argue that there is a political conspiracy. It clears the way for Zuma to the presidency.''

Zuma's supporters cheered as Nicholson made his ruling and broke out into a rendition of his signature tune ``Bring me my machine gun.''

``The best news about this is that it proves the independence of the judiciary is working very well,'' said Dawie Roodt, chief economist of Efficient Group in Pretoria. ``It removes legal uncertainty, but not political uncertainty. The room is still open for him to be recharged.''

To contact the reporter on this story: Mike Cohen in Cape Town at mcohen21@bloomberg.netRon Derby in Johannesburg at rderby@bloomberg.net

Last Updated: September 12, 2008 07:03 EDT