Cape Town - Deputy President Jacob Zuma was allegedly a secret shareholder in his financial advisor Schabir Shaikh's Nkobi group.

Charges against Shaikh include fraud, theft, corruption and money laundering.

Later the Nkobi group apparently reached a shareholder agreement with French arms company the Thomson Group, obliging it to do business in South Africa in partnership with Nkobi.

Last year Thomson was awarded a contract estimated to be worth R400m to equip the SA navy's corvettes.

According to the charge sheet served against Shaikh on Monday, the deputy president had owned a share in Nkobi since it was launched through a nominee, thereby keeping his interest secret.

Zuma therefore received all shareholder benefits without revealing his identity.

"The benefits Zuma received as secret shareholder of the Nkobi group are benefits he was not entitled to," says the charge sheet.

The government's controversial arms deal was apparently not the only transaction in which Nkobi and Thomson were involved. They were allegedly also awarded the contract to handle the new driver's licences from 1996 to 1997.

The charge sheet says there are a number of other contracts the two groups could become involved in.

They include upgrading Durban Airport, N3 and N4 roadworks projects, the third cellphone service provider, other military transactions and smart card technology.

With acknowledgements to Willem Jordaan and the Beeld.