It is still not clear whether Deputy President Jacob Zuma will be called to testify on behalf of his friend and financial advisor Schabir Shaik, although the question was raised by prosecutor Billy Downer on Monday.

He wanted to ask Shaik what Zuma would say about certain issues just in case the deputy president was called to testify.

Downer said the purpose of cross-examination was to see whether the evidence given by Shaik would tally with that of Zuma's. If it did not he would have to recall Shaik and it was therefore permissible to question Shaik on Zuma.

"There's no point in proceeding with something that may be entirely groundless" said Judge Hillary Squires.

Monday's cross-examination dealt with count 3 of corruption against Shaik in which the state alleges he attempted to solicit a R500 000 per annum bribe for Zuma from Thomson CSF.

This occurred after rumours of irregularities in South Africa's multi-billion rand arms deal surfaced. The alleged bribe agreement is contained in a document which is now known as "the encrypted fax" and has been handed in as evidence by the state.

Thomson's former South African boss, Alain Thetard, authored that document. Shaik's Nkobi Holdings and Thomson won the naval corvette contract through a shareholding in African Defence Systems. Shaik has denied any knowledge of the bribe and the "encrypted fax".

He has told the court he first became aware of possible arms deal irregularities in the press after the issue was raised in parliament by former Pan Africanist Congress MP Patricia de Lille. Shaik has admitted that he, Zuma and Thetard met in Durban on March 10, 2000 to discuss a donation for Zuma's Education Trust Fund.

However, Downer and his team say it was at this meeting that the issue of a bribe was raised.

On Monday Downer pointed out that it was strange that in all his correspondence with the French and a two-year pursuit of the donation, Shaik had never mentioned the Trust Fund in any correspondence.

"The nature and sensitivity of the matter had not been resolved in the minds of the French," Shaik said. State prosecutor Billy Downer asked why Shaik had only given the French two brochures about the trust and no other information. He was also asked why Thetard and Thomson CSF boss in France, JP Perrier, were not introduced to the board of trustees.

Shaik replied: "I could comfortably deal with the French on my own."

Downer also introduced the service provider agreement which Shaik allegedly had with Thomson. He asked the Durban businessman why if he had been unsuccessful in receiving money from Thomson CSF for Zuma, did he still pursue them for money in terms of a service provider agreement.

Shaik replied that there were two separate issues, "one was a business related matter the other was a non-business matter".

At that stage Shaik owed Development Africa R900 000 which he had taken from Zuma's account. He said he had no idea that Zuma had not stopped his traditional village project, Nkandla, which Shaik had told him was overpriced by the building constructor, Eric Malengret.

When he saw the R900 000 in Zuma's account which was part of R2 million donated by former president Nelson Mandela he used it in his company.

Shaik said he had the option of repaying the money, by realising his investments, or getting the money in terms of a service provider agreement with Thomson.

The state alleges that the R250 000 Shaik eventually received in terms of this agreement was actually part of the bribe money for Zuma.

The trial continues.

With acknowledgements to Wendy Jasson da Costa and Sapa.