For almost a year Jabu Ngcobo was a director of Nkobi Holdings. But he did not do anything about it. He even had his picture taken in Nkobi's boardroom, but he was only there to be introduced to the staff.

His organisation was given 10% of Nkobi's shares, but told to pay R101 million if they wanted to be part of the company.

This was how the plan to make Workers' College a black economic empowerment partner to Durban businessman Schabir Shaik's Nkobi Holdings worked out in the end.

Ngcobo and his colleague, Kessie Moodley, yesterday gave evidence at Shaik's trial. Moodley told the court that the only place the black economic empowerment plan took them to was to the witness stand.

The two of them were the final witnesses for this year in Shaik's marathon corruption and fraud trial. Shaik has pleaded not guilty to all the charges.

Ngcobo told the court that he had been chairman of Workers' College since 1996.

There were discussions about establishing a link between Nkobi and Workers' College. "Yunis Shaik (Schabir Shaik's brother who was involved with the college for some time) suggested that the college get a stake in Nkobi," he said.

"At the time the story was that Nkobi would apply for the driver's licence contract (to convert licences to credit card format). "Workers' College was to be there for the black economic empowerment. We discussed it and accepted the offer of 10% shareholding. We were led to believe that it would be 10%. No form of payment was mentioned. I never saw the document," Ngcobo said.

"There was discussion that the college should appoint a director and my name was mentioned, but I knew nothing else." Ngcobo said when they withdrew from Nkobi after adverse publicity he made it clear that their withdrawal included his resignation if he was a director.

Ngcobo was shown a brochure in court which had his picture. He told the court that he went to the office of Nkobi "to be introduced".

"They took my photo in the boardroom. I thought they might use it to verify that Workers' College was participating in driver's licences (project)." He received no notices of directors' meetings. "In May this year we decided to hand back the shares," he said.

Moodley said he investigated their shareholding in Nkobi after an article linked them with Schabir Shaik's company. He discovered they owned 10% of the shares in Nkobi. "Nkobi was looking quite healthy," he said, but explained they never got the share certificates *1.

He then tried to set up a meeting with Shaik. After some correspondence he received a letter from Shaik's attorney, Reeves Parsee, who wrote that they assumed they had relinquished the shares.

"He was only 50% correct," Moodley said. Workers' College did not know then if they wanted to let go of their shares.

He then met Parsee who followed their meeting with a letter which stated that if they wished to continue as shareholders they must pay Nkobi R101 million or give a guarantee of R10 million. "Nkobi felt that we made no contribution," Moodley said.

He added that Workers' College had paid nothing for the shares. "At the time there was a move to acquire black economic empowerment partners. It was a strategic move for Nkobi."

"It never got you anywhere?" Judge Hilary Squires asked. "It got us here today," Moodley said.

He understood that Workers' College would strengthen Nkobi's hand. "We felt that we at the very least should see Nkobi's annual report," he said.

He said they later transferred their shares back to Nkobi.

Francois van Zyl SC, for Shaik, said Shaik's brother Yunis would testify that there was a dispute within Workers' College about how the shares had to be handled. He would also say that he gave Schabir Shaik authority to act on behalf of the college until this was sorted out.

The trial resumes January 31.

With acknowledgements to Estelle Ellis and The Mercury.

*1 But a share certificate was issued - and signed for by Yunis Shaikh.