One avenue of investigation into the arms probe was closed yesterday when accountant Ian Pierce was found not guilty of failing to produce financial records in connection with his company Futuristic Business Solutions (FBS).

Investigators had hoped that FBS's financial records might assist them with their probe into corruption in the arms deal. The verdict prevents them from searching for further documents.

Pierce appeared in the Commercial Crimes Court on charges of ignoring a summons to appear before investigators into the arms deal, giving false evidence about the whereabouts of FBS's financial records and failure to provide cash books and ledgers for the period from 1996 to date.

Pierce is also a shareholder in African Defence Systems (ADS), which is at the centre of the arms investigation and allegations that Deputy President Jacob Zuma had attempted to secure a bribe from Thomson-CSF.

Thomson and ADS formed part of a German consortium chosen to supply SA with four new corvettes.

Magistrate David Makhoba yesterday dismissed all four charges against Pierce, saying there was insufficient evidence to convict him.

He said there was no possibility of conviction unless "the witness enters the witness box and incriminates himself".

Makhoba said there was no evidence that Pierce had received the summons to appear before investigators in July last year, as his secretary at accountancy firm Pierce & Gamble had testified that she received a lot of summonses for clients and could not remember if she left the particular summons on Pierce's desk.

With regard to allegations of Pierce lying when he said that he had given all documents to his auditor, state witness Peyush Dilip Bhana, FBS' independent auditor, admitted the documents were in his possession as testified by Pierce at the time.

With acknowledgements to Chantelle Benjamin and Business Day.