Despite being considered high risk, his position and his colour secured Deputy President Jacob Zuma acceptance at ABSA Private Bank, the Durban High Court learnt on Thursday.

This emerged in the fraud and corruption trial of Durban businessman Schabir Shaik. Despite also being considered high risk, Shaik was accepted as a client because of his relationship with Zuma and because as Zuma's financial adviser he had power of attorney over all Zuma's money matters.

This was the testimony of ABSA Private Bank's John Dwyer. ABSA Private Bank only deals with select clients with millions in assets. Dwyer said the bank had to accept both of them, because if either was rebuffed it could have had negative implications for Absa, which managed several government accounts.

According to a document before the court, Shaik and Zuma were accepted "bearing in mind the sensitive political nature of the two clients". Dwyer said he meant that ABSA did not want to jeopardise the relationship, where offence caused to one might have affected the other.

Under "comments" on Zuma's client acceptance form it is noted that "Mr Zuma will receive a R5m pension [in] 2004. His salary is periodically adapted upwards."

Also written on the form next to "motivation" is "Mr Zuma, being Deputy President of South Africa, is an influential person who has stated his support for ABSA -- we need black clients."

The form said that Zuma's net asset value was unknown.

Dwyer said at the time of his application to become a client of the bank in 2001, Zuma was more than R10 000 overdrawn. Shaik was overdrawn 15 times in 12 months.

On his application form, Zuma told Absa he expected to receive a pension of R5 million by 2004, said Dwyer, the State's second witness for Thursday.

Dwyer said although Zuma had no assets or vast sums for them to manage, his potential R5 million was the "clinching factor".

Shaik had told the bank he a net asset value of R7,2 million. On both acceptance forms credit manager Ian Macleod noted that he cannot recommend the two as clients.

A letter from Dwyer to Macleod in 2001 explains why the two were accepted.

Dwyer wrote: "at a meeting on 24 April 2001 with myself, Brenda, Gerrard Madgwick and Raymond O'Neill of the business centre, it was made clear to me that the reaction of Shaik in particular, and quite likely also Zuma, would be extremely negative, and quite possibly very detrimental to the group, if we then went to them to tell them that we could not accommodate them in the Private Bank."

Nelia van Coller, a bank official, testified that bank would want to see any assets and liabilities held by a client, including a revolving loan agreement *1.

The defence has produced such an agreement which it says was for a period of five years and an amount of R2 million between Shaik and Zuma.

Johan Lochner a regional manager of Bankfin, told the court about a car bought by Zuma's ex-wife Nkosazana Dlamini-Zuma, who was health minister in 1997 when she was in arrears with her car payments.

Lochner said the bank was on the verge of repossessing her Toyota Camry but he believed it was not suitable action given the nature of the person they were dealing with.

Lochner said Dlamini-Zuma said Jacob Zuma was responsible for the car. He said they received a letter of apology from Dlamini-Zuma.

A handwriting expert, Senior Superintendent Marius Rehder, was called to testify about two documents.

One was the handwritten version of the notorious encrypted fax which Rehder said was definitely written by Thomson CSF boss Alain Thetard.

This note records an alleged bribe of R500 000 a year for Zuma and was initially presented to the court during the testimony of a former Thomson secretary Susan Delique.

The other document was an alleged service provider agreement between Shaik's Nkobi Group and Thomson, with handwritten notes in the margin saying "conflict with intention".

Rehder said it was highly likely the note had been written by Shaik. However, due to the limited writing in the margin, he could not definitively attribute it to Shaik.

Before Rehder testified, defence advocate Francois van Zyl said although Shaik had no personal knowledge of the fax, he was prepared to admit it was written by Thetard. Van Zyl continued that Shaik was also prepared to admit that, although he could not confirm it, the note "conflict with intention" was made by him.

Shaik is accused of soliciting a R500 000 a year bribe for Zuma in exchange for protection during investigations into arms deal irregularities.

It is also alleged that Shaik used his political sway with Zuma to get a slice of the arms deal.

The German Frigate Consortium -- comprising ADS, in which Nkobi and Thomson had a share -- won the government's naval corvette contract.

The trial continues.

With acknowledgement to Sapa.

*1 Gotcha - again.