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Durban businessman Schabir Shaik today threatened state advocate Anton Steynberg.

The incident, which triggered a request from the state that Shaik's bail conditions be altered, happened about 10 minutes before the start of court in Durban this morning.

"I'm not scared of you, I'll sort you out after the trial. You're a racist, get that into your thick skull. You will be running from me like Bulelani (Ngcuka)," Shaik told Steynberg in a raised voice inside the court as counsel prepared for the day's proceedings.

Advocate Billy Downer SC, leader of the prosecution, told Judge Hilary Squires what had happened.

Downer said the state wished to apply for Shaik's bail conditions to be changed, including that Shaik be prohibited from threatening, swearing at or otherwise insulting members of the state's team.

Francois van Zyl SC, Shaik's senior counsel, told the court that this "unfortunate incident" had been caused by the prosecution's attempts to contact employees of Nkobi Holdings directly.

The judge told Downer to bring a formal application.

With acknowledgements to Estelle Ellis and The Star.