A former auditing clerk said he was ordered by his boss to write-off R1,2-million in the books of Durban businessman Schabir Shaik's Nkobi group of companies.

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

The State alleges that Shaik "kept" Deputy President Jacob Zuma "on retainer" in exchange for permission to use his name and his influence. It is further alleged that Shaik tried to solicit a R1-million bribe for Zuma from French arms company Thomson. According to the indictment, Shaik is also charged with having some of the money paid to Zuma "written off" in the books of Nkobi in the 1999 financial year. This meant that the money disappeared from company records.

Anthony Gibb's evidence dealt with the fraud charge to which Shaik has pleaded not guilty.

Gibb said he was informed that the write-off was above board.

The write-off zeroed the loan accounts for Shaik which included a number of payments made to Zuma, Floryn Investments, which Shaik has admitted was a vehicle to donate money to the ANC, and Clegton Investments through which payments for a flat occupied by Zuma was made.

He also said that when he realised that it was a mistake, he ordered that it be rectified.

In 1999 Gibb was an auditing clerk at David Strachan & Taylor.

He told the court that when he did the audit he was informed the company's financial affairs were to be reviewed by its bank. As such, he explained to the court they would have wanted the "most favourable position" to be depicted. He told the court that Shaik's Nkobi group of companies was regarded as a "controversial client" by the clerks at David Strachan & Taylor.

He said that after he did the audit, he was ordered by one of the two partners at the audit to make a number of journal entries that eventually constituted the write-off.

He said he remembered that the meeting was between himself, Paul Gering and Ahmed Paruk. He could not remember who of the two gave the instructions. "But the other did not protest," Gibb said.

"I would have been satisfied to do this, if the partners were. They were my superiors."

He said he considered the amount of R1,2-million that disappeared from company books because of the write-off as material. He assumed that the "write-off" had been discussed with Shaik, but it was not done in his presence.

"Mr Shaik will say he had no knowledge of this until he received a letter from his bookkeeper, Celia Bester, in December 1999," advocate Francois van Zyl SC said.

In re-examination by advocate Billy Downer SC, who is leading the prosecution, Gibb said Shaik would have benefited personally from the write-off. Downer added that Shaik said he "found out" about the write-off in late 1999, but still signed the financial statements in February 2000.

With acknowledgements to Estelle Ellis and the Pretoria News.