Durban: Schabir Shaik has blamed his financial management team for the irregular write-off of money and the creation of non-distributable reserves (NDR) in the book of his Nkobi group of companies.

He also said yesterday he could not understand what could have led Thomson-CSF head Alain Thetard to write the fax allegedly setting out a bribe agreement with Deputy President Jacob Zuma. He could not understand how a cup of tea and a talk about education in rural KwaZulu-Natal could translate into an agreement to pay a bribe.

Explaining why he was not responsible for the irregular bookkeeping, Shaik said: "The auditors must take responsibility for the advice they give companies like ourselves.

"The laws that protect them are unacceptable."

Shaik told the high court here that at the time the transactions took place, he had no idea what an NDR was and that his financial management team had consulted him only on "exceptionally rare instances".

Shaik said he could not recall a meeting with auditor Ahmed Paruk at his offices where these entries were discussed. He said he "emphatically" denied this meeting had taken place.

It was "scandalous" to suggest he had been advised of the write-off.

He had a limited knowledge of bookkeeping and the last time he had attempted it was in high school and he had not done well.

Shaik's accountant, Celia Bester, has told the court she warned Shaik repeatedly that his business was in overdraft and on the brink of bankruptcy.

Shaik said if he were as conservative as accountants were he would not be in business today.

He testified that in February 2000 he asked for a meeting with Thetard about "our understanding with Zuma and issues raised".

Thetard wrote back saying he would like to meet Shaik.

A meeting was scheduled for March 11, 2000. Shaik said it was planned that Zuma would be present so the French could hear from him why they should give money to the Jacob Zuma Education Trust.

"My relationship with the French was becoming increasingly distrusting... I did not want the French to think: 'Here is Shaik again - he is asking for money.' "

The meeting was held a day earlier, however, because Zuma had an engagement and had to leave early on March 11.

"The meeting took place at the official residence of the deputy president, King's House. It was me, Thetard and Zuma.

"Zuma spoke about the trust and how education is a luxury in his home town of Nkandla... Thetard... said he would speak to his senior management ... The meeting was short."

A week later Shaik met Thetard and Yann de Jomaronn, of Thomson-CSF, in Pretoria. Thetard had said nothing about the donation for the Jacob Zuma Education Trust.

"The only time I found the French amenable to assist was when I went to them for money for the Mbeki Trust Fund and the Mandela Trust Fund."

With acknowledgements to Estelle Ellis, Sapa and the Cape Times.