The continuing saga around the exclusion of the Heath Special Investigating Unit from investigating the arms deal lived on in the trial of Durban businessman Schabir Shaik in the Durban High Court on Wednesday.

Two former members of the unit on Wednesday gave evidence and the former head of the unit, advocate Willem Heath SC, is expected to give evidence on Thursday.

Shaik has pleaded not guilty to two charges of corruption and one of fraud.

MPs Patricia de Lille and Gavin Woods said on Tuesday they were eager for the unit to investigate allegations of corruption around the arms deal. But according to the law, the Heath Unit needed a proclamation from President Thabo Mbeki before they could start.

Advocate Gerhard Visagie said on Wednesday that they were optimistic when the matter was referred to them at the end of 2000. They had believed they could play a role in the investigation of compliance with procurement procedures, the validity of contracts, and possible misrepresentations or undue influence.

As the year progressed, Visagie said, there was a deterioration in the relationship between Judge Heath and the authorities. This was followed by a Constitutional Court judgment stating that it was unconstitutional for a judge to be the head of an investigating unit.

Advocate Jannie Lubbe SC, who was a senior legal consultant for the Heath Unit, said the former minister of justice, Penuell Maduna, had contacted him and the former director of public prosecutions of the Cape, advocate Frank Kahn SC. He wanted their advice on whether there was anything in the arms deal that warranted an investigation.

Lubbe said they concluded it was too early to tell if criminal offences had been committed but said there were sufficient grounds for an investigation. "We advised that there should be a proclamation."

On January 18, 2001 he received a telephone call from Maduna, who asked if there was any prima facie evidence of a criminal offence committed. Lubbe said not at that stage. The next day Mbeki announced he was not going to give a proclamation to the Heath Unit to investigate the arms deal.

With acknowledgements to Estelle Ellis and The Mercury.