Schabir Shaik, chief executive of Nkobi Holdings, says the Scorpions’ investigation of his dealings in connection with the arms deal has damaged his credibility as a businessman, scuppering several deals involving billions of rand.

“In these circumstances potential partners get jittery,” Shaik said. “My bankers know the integrity of our business. They have been fully supportive and in that way are a barometer of our business integrity.”

Nkobi Holdings had a business relationship with French defence company Thomson CSF - now part of Thales - which was among the arms deal bidders. Thomson CSF and African Defence Systems won the contract to supply four corvettes.

Shaik is also Deputy President Jacob Zuma’s financial adviser.

His brother Chippy was the procurement officer for the department of defence. Chippy Shaik was charged under the Protection of Information Act last year. It is alleged that when the Scorpions raided his home and offices, they found classified documents relating to cabinet meetings about the arms deal.

The Scorpions have recently subpoenaed Schabir Shaik to answer questions on, among other things, allegations of a relationship between Zuma and Thomson CSF. At the time of the alleged relationship, Zuma was KwaZulu-Natal MEC for economic development and tourism.

“Right-wing elements are using resources of the state to embarrass the government,” a third brother, Mo Shaik, South Africa’s ambassador to Algeria, said yesterday.

“They touched my family and that is OK. But now they have touched the deputy president ... that is not OK.

“Do you not think if there was one shred of evidence after such a long investigation, they would have proceeded with a trial? Just as we did in the time of apartheid ... in the case of political (detainees) ... we call on the Scorpions to prosecute or exonerate.”

Scorpions spokesman Sipho Ngwema could not be reached for comment.

Deputy Defence Minister Nozizwe Madlala-Routledge has named the second of the four new corvettes the SAS Isandlwana, after the site of the 1879 Zulu victory over the British.

The ceremony was held at the Kiel shipyard in Germany.

With acknowledgements to Samantha Enslin and Cape Times.