Durban - A revolving credit agreement between Deputy President Jacob Zuma and businessman Schabir Shaik was on paper, signed and declared to parliament, the high court here has heard.

In saying this, Francois van Zyl, SC, for Shaik, produced the two-page document while cross-examining Johan van der Walt, the forensic auditor who has given evidence for the prosecution.

Shaik, accused by the state of a "general corrupt relationship" with Zuma, has pleaded not guilty to two charges of corruption and a third of fraud.

In his report, Van der Walt said he had found R1.2 million in payments made by Shaik to or on behalf of Zuma.

In his plea explanation, Shaik said he had a revolving credit agreement with Zuma, but silence fell over the courtroom yesterday as Van Zyl produced the document, Exhibit P47.

Lead prosecutor Billy Downer, SC, told the court: "We don't accept the authenticity of this document."

Van der Walt read the two pieces of paper.

Van Zyl explained: "This particular document was faxed from the deputy president on August 23, 2004."

"The evidence will be that my client has a copy. The original of this document is filed in the confidential section of the parliamentary asset register. We had been trying without success to get it."

Van der Walt replied: "This starts on page 2. I want to see the fax cover letter. I don't know where it comes from."

Van Zyl said the defence would lead evidence about this. He explained to the court that the deal was a revolving credit agreement for R2m.

Shaik's name is spelt incorrectly as "Shabir" on the document, signed by Zuma and Shaik and dated "16/5/1999".

Van Zyl said Shaik would explain that an interest clause - charging interest at the prevailing prime rate plus 2% - had been included in the agreement at Zuma's insistence.

Shaik had told Zuma it was contrary to his Muslim beliefs to charge interest and that the interest would be given to charity.

The loan was for five years and the loan period has expired.

A fresh agreement had yet to be concluded, but "the loan will carry on for another period", Van Zyl said.

Van der Walt replied: "I assume you will show me the balances and interest outstanding."

"Never assume anything in a court of law," Van Zyl said.

"Sorry, my Lord," Van der Walt replied. "I am an accountant, not a lawyer."

Proof of the credit agreement was handed to court after Van Zyl said that Shaik had not declared a number of debts owing to him by Zuma, as the acknowledgements of debt previously drawn up between Shaik and Zuma had been superseded by the credit agreement. The questions continued.

Downer objected at one stage to cross-examination about the number of files relating to Zuma confiscated by the Scorpions and seen by Van der Walt as unfair, but the court overruled him.

Van Zyl : " You said in your report that there was no evidence or indication of an attempt to recover money from Zuma."

Van der Walt : "There are some indications that some money was repaid, but to a limited extent with no regular intervals. There are no letters requesting payments."

Shaik would say the payments to and behalf of Zuma were no secret.

Van der Walt : "I can't dispute that."

"Even third parties knew about it," Van Zyl said. "They were just happy to get their money," the auditor replied.

With acknowledgements to Estelle Ellis and the Cape Times.