Despite simultaneous search-and-seizure operations in South Africa, France and Mauritius on October 9, 2001, no copy of the so-called "encrypted fax" at the heart of the Schabir Shaik fraud and corruption trial was ever found.

This emerged in the Durban High Court testimony of former top Scorpion investigator Gerda Ferreira.

The encrypted fax records a bribe of R500 000 per annum for deputy president Jacob Zuma from French arms company, Thomson CSF.

The state alleges it was solicited by Shaik, Zuma's financial manager, in exchange for protection during investigations into irregularities in South Africa's multibillion rand arms deal.

The state alleges that the agreement was made following a meeting in Durban in 2000 between Shaik, Zuma and Alain Thetard who headed up the South African side of Thomson CSF.

On Monday, Ferreira said initially there was a "difference in opinion" amongst investigators about the existence of the document.

However, a copy of the fax has already been handed in as evidence to the court after investigators were given a printout by Susan Delique, Thetard's former secretary.

In her testimony at the start of the trial, Delique said Thetard had told her to type up the agreement and fax it in encrypted form to France.

Shaik has denied any knowledge of the fax or the bribe.

He has admitted that the meeting took place but says he only tried to get money from Thetard for Zuma's Education Trust Fund.

However, Ferreira on Monday read out a letter from Thetard to Thomson CSF boss in France Jean Paul Perrier dated June 25, 2003.

In it Thetard writes that he has been "the object in a repetitive manner of requests on the part of our partner, Schabir Shaik, to secure from Thales (Thomson CSF) the necessary financing for the development of the latter's firms in this country. Although I did not act on these requests it is possible that, at times, I could have wondered about the real causes regarding such demands taking into account the local context.

"However, today I consider that those requests could only be justified by company management imperatives and I therefore confirm the contents of the answers made during my questioning under oath in Pretoria..."

In the same memo Thetard tells Perrier that he "cannot recall" having written this document, referring to the encrypted fax.

However, he confirmed that he met Shaik and Zuma in Durban but said it was "to verify the credibility of our Durban establishment and only dealt with general matters regarding this activity."

Thetard is currently in France and although initially on the state's witness list, he has refused to travel to South Africa to testify.

Ferreira said at the time she was still with the Scorpions, there were two warrants of arrest for Thetard, for corruption involving the arms deal and for lying under oath when they initially questioned him at his offices in Pretoria.

She said they promised to freeze -- but not cancel the warrants -- if he agreed to travel to South Africa to testify, but he refused.

Judge Hillary Squires resumed the case after its December adjournment with his usual wit saying:" Anyone who feels a sense of deja vu .. you are not alone".

An accurate comment after forensic auditor Johan van der Walt who spent 16 days in the witness box during his evidence in chief was recalled to answer questions about interest Zuma owed Shaik and where the encrypted fax was sent from.

Van der Walt said up to November 2004 Zuma owed Shaik R2,2 million rand in capital and interest excluding possible repayments that could have been made.

Previously he had calculated interest daily but was told to recalculate after the defence said interest was calculated annually.

The money owed was for the R1.2 million Shaik loaned Zuma and which the state alleges was a series of bribes and indicative of a generally corrupt relationship.

The defence has produced a revolving loan agreement of R2 million rand which it says was signed between Zuma and Shaik in May 1999.

Shaik's charge of fraud relates to the irregular write-off of R1,2 million which he said was a mistake and rectified in later years.

The trial continues.

With acknowledgement to Sapa