Durban - Fraud and corruption accused Schabir Shaik regarded Deputy President Jacob Zuma's pension money of R3.2 million as a source from which he could be repaid if Zuma lacked the cash to do so, the Durban High Court heard yesterday.

Defence advocate Francois van Zyl told the court Zuma no longer had obligations to Standard Bank and Nedbank and had also paid back the R250 000 owing to Eric Malengret who developed his traditional village project, Nkandla.

Shaik's lawyer also pointed the finger at the financial director of Nkobi group and external auditing firm, David Strachan and Taylor, saying they were to blame for irregularities in the group's accounting records.

The state alleges Shaik paid at least R1.2 million to Zuma in an attempt to secure a slice of the controversial multi-billion rand arms deal, and attempted to get a bribe of half a million rand a year for the deputy president from French arms company Thomson CSF - in exchange for protection during investigations into arms deal irregularities.

Thomson CSF and Nkobi tendered for the naval corvette contract under the umbrella of African Defence Systems.

Yesterday Van Zyl wound down his cross-examination of forensic auditor Johan van der Walt by explaining away all the charges against Shaik.

With acknowledgements to Sapa and the Cape Times.