The arms investigation has come across information that indicates strong ties between ANC leaders and top government officials with Mr Schabir Shaik, the controversial Durban businessman and role player in the arms transactions whose house and offices were raided during the past week.

Rapport has learnt that certain ANC politicians are deeply concerned about the content of the documents which the Scorpions found and confiscated.

Shaik’s involvement and influence reaches deeply into the ANC and the government. Big government contracts were awarded to him and his companies.

He also manages the personal finances of Vice President, Jacob Zuma.

Mr Pravin Gordhan, commissioner of the South African Revenue Service (SARS), confirmed that his brother-in-law, Mr Silvendra Raju, is working for Shaik.

He also confirmed that at Shaik’s request he (Gordhan), solved a "tax problem" for Shaik’s inlaws’ clothing business.

According to Mr Fani Zulu, SARS representative, it is part of SARS’s open door policy to help tax payers with tax-related problems.

Shaik also has ties with Mr Mac Maharaj, former minister of Transport. He is the chairman of Prodiba, which is under the same management as Thomson-CSF.

This company was awarded the contract of R273 million in 1998 to manufacture the country’s new drivers licence cards, even though Thomson-CSF didn’t have any previous experience of such projects.

Politicians fear that further financial irregularities, other than in the arms investigation, will be uncovered.

The possibility was mentioned that this kind of information could lead to further investigations.

Shaik also gives regular donations to the ANC in kwaZulu-Natal.

According to documents drafted by "concerned ANC members" and handed to the arms deal investigators in the beginning of the investigation process, Shaik was a fundraiser for the ANC, but it is believed that former president Nelson Mandela was not happy with his behaviour.

When questioned, Mr Sipho Gabashe, Secretary-General of the ANC in the province, confirmed that Shaik gave money to the ANC for example "funerals or when the ANC needed money for activities such as conferences".

According Rapport’s information, Dr Zweli Mkhize, LUR for health in kwaZulu-Natal, collected cash from Shaik’s office as provincial treasurer on more than one occasion.

Mkhize did not react to queries.

Shaik also has direct access to Mr Mendi Msimang, the national Treasurer of the ANC.

He also has contact with the Chief of Police, Jackie Selebi, through his personal assistant, Mr Thinus Botha.

The raids followed after reports appeared in Rapport in April this year of a "damage control meeting" which Shaik attended in Mauritius in November last year with senior management members of Thomson-CSF.

At this meeting it is believed that Shaik indicated his concerns surrounding the involvement of Judge Willem Heath’s investigating unit in the arms probe. He was worried that a certain ANC member would "open his mouth" and that they would all then be in trouble.

A simultaneous raid was conducted on Tuesday on Shaik and his Nkobi Holdings, including the offices of Thales International, the holding company of Thomson-CSF in France and Mauritius and the houses of two senior directors of Thomson-CSF’s South African branch, Mr Jean-Paul Perrier and Alain Thetard who, according to Rapport’s information, were also at the meeting in Mauritius.

Thomson-CSF and Shaik have an interest in African Defence Systems (ADS), which played a pivotal role in obtaining the arms contract.

Shaik is also the brother of Mr Chippy Shaik, chief of arms procurement of the Defence Force and a key figure in the arms transaction.

Shaik has an interest in Cell C and was awarded a contract of R37 million last year for the census which is currently underway.

In addition, he also has an interest in N3 Toll Concessions, the company responsible for developing toll roads, the gambling industry and the construction of King Shaka airport in Durban.

Shaik also has ties with Mr Michael Woerfel, managing director of EADS, who appeared in the magistrates court last week in Pretoria on counts of fraud and forgery. He, together with Mr Tony Yengeni, former Chief Whip of the ANC, are being accused in respect of the large discount which Yengeni allegedly received for a luxury motor vehicle.

With acknowledgment to Andries Cornelissen, Rapport and News24.