Businessman Schabir Shaik has admitted to exaggerating the length of his friendship with Deputy President Zuma in correspondence to a business associate. There were none of Monday's fireworks in the high court here yesterday.

Voices were raised once, smiles exchanged often during Shaik's second day of cross-examination by lead prosecutor Billy Downer, SC.

Shaik, on trial on fraud and corruption charges, was confronted by Downer with a 1999 document claiming he had known Zuma since 1974. He said he had meant his family had known Zuma that long.

Downer: Where did you think Zuma would get the money to pay for (his traditional homestead)? Did you discuss how he was going to pay for it?

Shaik: I would not even think of asking such a question. It is not in our culture to ask. *1

Why had Zuma stepped in to help him when he had problems with French arms manufacturer Thomson-CSF, Downer asked.

Shaik said one of the reasons was that Thomson-CSF had problems in understanding black economic empowerment (BEE). Zuma had a duty to any empowerment company and BEE should benefit all black people and disadvantaged whites.

Shaik: The French misunderstood BEE. They had to talk to politicians. They thought BEE was only for blacks.

Downer: The French wanted the correct approval from the correct people.

Downer: I say BEE was not the French's problem.

Shaik: Well, you go ask Jean-Paul Perrier what was his problem. *2

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

*1   There was no shyness whatsoever about asking for splodges of wonga from Thomson-CSF and threatening them when it was not forthcoming.

*2   Thomson-CSF's problem was that Mandela and Mbeki did not approve of the Sons of the Earth.

What is more interesting in the greater scheme of things is that the "BEE" company that had got the nod as Thomson-CSF's and ADS's partner was 60% owned by someone who was "coloured" and not black and just happened to be Chippy Shaikh's accountant. Another partner in this "BEE" company is Muslim and not black and also happens to be a very close friend of Chippy Shaikh. Chippy Shaikh just happened to be the Chief of Acquisitions. This is commonly called cronyism. The other two minority shareholders are indeed black, but just happen to be close family of Joe Modise, the Minister of Defence. This is commonly called nepotism.

Joe Modise just happened to be a trusted member of the SDP Ministers' Committee (MINCOM), under the chairmanship of the Archangel of BEE, Deputy President Thabo Mbeki.

Chippy Shaikh was the trusted permanent invitee and secretary of this all powerful redistribution committee.