The Durban High Court would be hampered in adjudicating upon the entire state case if the "encrypted fax" was excluded as evidence, prosecutor Billy Downer argued in the Schabir Shaik fraud and corruption trial on Monday. "The encrypted fax is the only evidence found or produced by either the state or the defence of what transpired at the meeting," said Downer.

He was referring to a March 11, 2000, meeting between Shaik, Deputy President Jacob Zuma and Alain Thetard, the South African head of French arms company, Thomson CSF. The state believes it was at this meeting that a R500 000 per annum bribe for Zuma was discussed.

They claim that Shaik, Zuma's financial advisor, solicited the bribe in exchange for protection during a multi-agency probe into alleged irregularities in South Africa's arms deal. "I am trying to be as uncontroversial as possible," said Downer as he listed the sequence of events which is undisputed between the state and defence.

He said Shaik had approached Thetard on September 30, 1999, requesting that Thomson should provide money. The request had something to do with Zuma and that led to a meeting between Zuma, Thetard and Shaik in Durban. Thetard was to convey the request to Thomson CSF in Paris for approval.

The request was approved by Thomson boss J P Perrier and Thetard was to arrange for the payment. However, the state maintains that the request was for bribe money while the defence argues it was merely fund-raising for Zuma's Education Trust Fund. Downer questioned why none of the parties referred to the Education Trust Fund in their correspondence, why Thetard needed to meet Zuma personally instead of liaising with the trustees of the fund and why some of the letters by Shaik were so "threatening" if they were just for a donation. He said there was "no reason to believe the Thomson personnel would create a series of false documents."

Downer told the court that if all the evidence leading up to the fax was examined it was clear that "something funny is going on. "There is a plethora of evidence that points to a conspiracy." Since Friday he has been arguing the admissibility of seven documents, including the encrypted fax, to which the defence is opposed.

On Monday Downer said the state had proved that the encrypted fax was an original document composed by Thetard. It was given to investigators by Thetard's former secretary, Sue Delique, who said Thetard had given her a handwritten note which she typed up in fax form and on his instruction sent in encrypted form to the Thomson head office in Paris. The fax is clearly headed FAX CRYPTE. The typed version of the note is addressed to Thomson's sales director for Africa, Yann de Jomaron, and headed, "Subject: JZ/S.Shaik".

It reads: "Dear Yann: following our interview held on 30/9/1999 with S. Shaik in Durban and my conversation held on 10/11/1999 with Mr J.P. Perrier in Paris I have been able (at last) to meet JZ in Durban on the 11th of this month, during a private interview in the presence of S.S. I had asked for S.S. to obtain from J.Z. a clear confirmation or, at least, an encoded declaration (in a code defined by me), in order to validate the request by S.S at the End of September 1999. This was done by JZ, (in an encoded form). May I remind you... the two main objectives of the 'effort' Requested of Thompson-CSF are:
-- Thompson-CSF's protection during the current investigations (SITRON)"
-- JZ's permanent support for the future projects Amount: 500k ZAR per annum (until the first payment of the Dividends by ADS)."

Thompson won the naval corvette tender, and then shared it with Nkobi via a joint shareholding in African Defence Systems -- the ADS in the encrypted fax. Downer said Shaik and Thomson CSF engaged in the "informal process" of doing business.

He said Shaik used 'political connectivity" while Thomson relied on political influence, approval and intelligence to do business successfully.

He described it as " the way Thomson do business, the way they always do business, the way they're likely to do business in the future." The trial continues.

With acknowledgement to Sapa.