Durban - Why was deputy pesident Jacob Zuma present at meetings between Schabir Shaik and French arms manufacturer Thomson-CSF?

Defence advocate François van Zyl told Durban High Court on Tuesday that Zuma's involvement was limited to resolving a dispute.

This involved allegations that President Thabo Mbeki had said Shaik's Nkobi Holdings was not a suitable and acceptable black economic empowerment company in South Africa.

Van Zyl explained this during cross-examination of one of the state's key witness, KPMG forensic director Johan van der Walt.

Van der Walt had compiled a 250-page report on Shaik's business affairs which the State hopes will prove the businessman solicited an annual R500 000 bribe to Zuma for protection from investigations into the country's controversial multibillion-rand arms deal.

Nkobi Holdings and Thomson-CSF partnered under the umbrella of African Defence Systems (ADS) to win the corvettes tender.

On November 18 1998, the cabinet chose German Frigate Consortium (GFC) as its preferred bidder. ADS was part of this consortium.

The State also claims Shaik paid Zuma for his political influence to get projects for Nkobi Holdings.

Van Zyl told the court on Tuesday that, before the bidding process, Shaik had a discussion with Zuma regarding the allegations, which were attributed to Mbeki.

"Shaik will say these allegations were that he and his company were not seen as acceptable and suitable BEE partners," said Van Zyl.

He said Zuma met Thomson-CSF's Jean Paul Perrier in London when he was on official business and again on November 18 1998 at the Elangeni Hotel in Durban.

According to Van Zyl, Thomson International sent a letter to Shaik on July 7 1998, asking for a meeting with Zuma while they were in South Africa from November 17 to 19.

Shaik would say that Zuma did arrive during the meeting on November 18 1998, but was not there for the whole time.

With acknowledgements to Nivashni Nair,Iaine Harper and The Natal Witness.