Enormous amounts that were written off in the books of Durban businessman Schabir Shaik's Nkobi group of companies had been "bribe money" paid to "a lot of ministers" in cash, his former accountant said.

Celia Bester yesterday gave evidence against her ex-boss.

The main trigger for her resignation was when hundreds of thousands of rands in three loan accounts were written off against what were called "development costs", even though the deal referred to had generated no such thing.

In the letter of resignation she wrote to Shaik in December 1999, she said: "If you as the financial adviser to (Jacob Zuma) are not transparent, heaven help South Africa."

"I saw it purely as bribe money," she told Judge Hilary Squires.

"A lot of ministers received money that was just written off. It was always cash cheques. We got the whole Prodiba deal (for the conversion of South African driver's licences to the credit-card format) through our political connectivity. There were no development costs."

Shaik hardly drew a salary and never paid any tax, but just took the money he needed from the company loan account. Zuma was also not paying tax on the payments made to him by Shaik, she said.

"Shaik was not what he appeared to be. Shaik was advising Zuma on how to manage his affairs and he could not run his own," she said.

In her letter of resignation she further stated: "The funds being paid to the ministers should be taxed in their hands as well as your (referring to Shaik) income. If we are not transparent at this level there is no hope for South Africa."

Bester worked at Nkobi from 1998. She said she was attracted to the company because Shaik was strong on empowerment and the transfer of skills.

She told the court that Shaik said in his resumé that he was Deputy President Jacob Zuma's personal adviser and had close links to former ANC treasurer Thomas Nkobi.

"Mr Shaik told us that he was an adviser to Zuma. He used it in a lot of his conversations. He mentioned his political connectivity. He said it was important for a black economic empowerment company."

Bester said she became involved with the accounting department at the firm after Shaik had expressed his dissatisfaction with the way things were done there. At the stage when she worked there, Nkobi was in financial trouble.

"We were constantly in overdraft," she told the court. "Shaik was very good at negotiating the big deals, but there was no money to fund day-to-day operations.

"Mr Shaik was not very good with deadlines," she said.

She said she never knew what Floryn Investments was and was never answered when she asked Shaik about it. During the trial Shaik said that it was the vehicle through which he made donations to the ANC.

She described to the court that she once offered to leave the company after Shaik was "mean" to her. "He had a reputation for being highly irritated with the staff, and he would voice it."

When she resigned she told Shaik that she had learned a lot about politics, business and people from him.

She said when she realised what Shaik and one of the auditors, Paul Gering, had done with the loan accounts she was "extremely agitated".

"The entries were never discussed with me. I didn't like it. A director is not supposed to do that. I was excluded. Shaik knew what my reaction would be."

In her resignation letter, Bester said to Shaik: "I joined the group as I believe in empowerment and upliftment of our poorer and disadvantaged communities. However, it has become clear to me that Thomas Nkobi's vision is not happening here."

"All I have seen is enrichments for yourself and certain ministers ... You want to be seen as one of the five clean empowerment companies, but what you say and what you do are two different things," she wrote.

The trial continues.

Judge Hilary Squires yesterday dismissed, with costs, an application to record and broadcast the evidence led at the trial on radio.

The dismissal was a blow for freedom of expression, the National Press Club yesterday.

Chairman Ben Rootman said in Pretoria the trial was of national importance as it involved the spending of taxpayers' money.

Squires dismissed the bid by television broadcaster e.tv, SABC radio, and talk stations 702 and Capetalk.

With acknowledgements to Estelle Ellis and the Pretoria News.