Deputy President Jacob Zuma owes fraud and corruption accused Schabir Shaik R3,2 million, or over half the value of his pension, the Durban High Court heard on Monday.

Shaik gave R1,2 million to Zuma, and forensic auditor Johann van der Walt told the court an equal amount, if not more, would have to paid in interest if a revolving loan agreement between the two parties was taken into account.

Two weeks ago the defence produced what it said was a five-year revolving loan agreement of R2 million between Shaik and Zuma. It made provision for interest calculated at prime plus five percent. *1

Defence advocate Francois van Zyl said Shaik did not want the interest because it went against his principles as a Muslim, and so agreed to donate the money to charity.

The State alleges that R1,2 million used to fund Zuma's expensive lifestyle was indicative of the "generally corrupt relationship" between the two. The State alleged the money was also an attempt by Shaik to get the deputy president to use his influence to get the Nkobi Group a slice of government's multi-billion rand arms deal.

The court also heard that the Nkobi Group had a charitable trust. Four payments made from this trust were to Zuma and were later claimed as a tax deduction *5.

Shaik is also accused of soliciting a R500 000 per annum bribe for Zuma in exchange for protection during investigation into arms deals irregularities.

Cross examination of Van der Walt on his Scorpions' forensic report, detailing the books of Shaik and Nkobi as well as Zuma's finances, ended on Monday morning.

Prosecutor Billy Downer was re-examining Van der Walt.

Earlier, Van Zyl questioned the independence of Van der Walt's forensic audit report saying it was biased in favour of the state. Van der Walt responded that any other independent investigator would have come to the same conclusion.

The trial continues.

With acknowledgement to Wendy Jasson da Costa and Sapa.

*1 Prime plus five - eina! *3

*2 Must have been a tax deductible donation to the Zuma Childrens' Educational Bursary Trust. There are so many of these children that the Thales Donateers' R1 million contribution couldn't have been enough to go round.

Simplistic Actuarial Science II

*3 If there was an outstanding loan of R3,2 million in 2004 then at average interest rate of 18% (average prime of 13% plus 5%) per year and without any repayments or further loans, by 2014 the loan amount would be R19,8 million and by 2019 the loan amount would be R45,2 million.

The Man would certainly need a Giant Plan.

Simplistic Acquisition Practice I

How about Arms Deal II - 104 Challenger II main battle tanks for the SA Army, a few thousand infantry fighting vehicles to replace the Ratel, Buffel and Casspir, nine 800 tonne multi-purpose offshore vessels to replace the strike craft and minesweepers, etc. and a few EADS A400 aircraft for heavy airlift and rapid deployment - inter alia.

There's gold in them thar hills.

Rush for accreditation as an approved supplier with Armscor. No skills or financial backing required. Just as long as you weren't allowed to vote in the 1989 election.

What if you were then not yet eighteen years old? Or if the party you voted for had never won an election nor ever would win an election?