This is likely to be the most difficult week for Schabir Shaik as he faces cross- examination by state prosecutor Billy Downer in his fraud and corruption trial.

Shaik, who was financial adviser to Deputy President Jacob Zuma, pleaded not guilty to two counts of corruption and one of fraud in the Durban High Court last October.

He has conceded bankrolling Zuma to the tune of R1,2m.

Last week, Shaik took the witness stand after Judge Hillary Squires had admitted as evidence a fax allegedly implicating Zuma in a R50 0000 annual bribe from French arms company Thomson-CSF in return for protection against investigation into irregularities in the multibillion-rand arms deal.

Zuma allegedly sought to formalise the financial relationship with Shaik, resulting in the two men drawing up a R2m revolving loan agreement in May 1999.

Zuma was meant to have registered the document in Parliament’s confidential register of members’ assets, but there is apparently no record of it.

Shaik has acknowledged he called on Zuma’s assistance in a host of business dealings and used Zuma’s name in securing business deals. However, he said his Nkobi Holdings company never benefited from contracts over which Zuma had influence.

Shaik also described a meeting on March 10 2000 between himself, Zuma and Thomson-CSF Africa director Alain Thetard as relating to a donation from the arms company to the Jacob Zuma Education Trust.

The state alleges the bribe was solicited at the meeting.

With acknowledgements to Nicola Jenvey and Business Day.