Judgement on whether the state can allow a witness to testify via a video link from Scotland in the Schabir Shaik fraud and corruption trial is expected on Wednesday.

If presiding judge Hillary Squires rules in favour of the state it will be the first judgement of its kind in South Africa.

The court on Monday heard that the witness, Professor John Lennon, was based in Glasgow and was not available to come to South Africa before the court adjourned on December 10.

Prosecutor Billy Downer has asked Squires to allow Lennon to give evidence from the University of Glasgow on November 23 and 24 in the presence of a South African diplomatic official because his "availability is limited to those two days".

Downer said the two-day linkup would cost R36 000 and that the court with the help of "modern technology" would be able to examine documents very closely on full screens in South Africa and in Glasgow.

Those documents allegedly relate to the fraud charge against Shaik.

Shaik has pleaded not guilty to two charges of corruption and one of fraud. The state also alleges that he organised a R500 000 per annum bribe for Deputy President Jacob Zuma in exchange for protection during investigations into irregularities in South Africa's multi-billion rand arms deal.

However, Downer said the Durban High Court would have to reconvene at the University of kwaZulu-Natal because the court itself did not have video conferencing facilities.

Downer said video conferencing was more cost effective than sending officials to Glasgow to take Lennon's evidence.

The other alternative was to postpone Lennon's testimony until he could travel to South Africa in February or March 2005 but "the state would not like to cause unnecessary delays," said Downer.

He said there would be two big screens in South Africa and two at the University of Glasgow enabling Lennon to see himself and what was happening in South Africa on a screen and vice versa.

However, Downer said although access to Lennon's testimony was open it would be "limited by space available."

He said it was possible to get a recorded video of the evidence and that journalists would have access to it.

"We are in the 21st century we do have modern technology available to us," said Downer.

According to evidence before the court Lennon wanted to open an eco-tourism school in kwaZulu-Natal when Deputy President Jacob Zuma was the province's MEC for Economic Affairs and Tourism.

Zuma had allegedly asked Lennon to consider Shaik's Nkobi Holdings as a preferred black empowerment partner. However, Shaik allegedly threatened to use his political influence against Lennon and quash his plans when he indicated his intention to go ahead without Nkobi.

The school was never opened. Defence advocate Francois van Zyl on Monday said the application presented "procedural difficulties" and asked why Lennon was only approached in the first week of the Shaik trial which started on October 11, and then asked to testify on October 25.

He also questioned the validity of evidence presented to a South African court from a foreign country via video link.

Van Zyl said the issue was whether Lennon's testimony would be evidence. He argued that the oath made by Lennon would not be binding and that it was possible that if perjury was committed, he could contest that he was not lawfully under oath.

He also asked how the judge would be able to discipline a witness who was sitting in another country.

Downer said it was possible to move the proceedings to a South African high commission which meant that the proceedings would then take place on South African soil.

He said because Lennon would be able to see the court officials and vice versa his oath would be binding.

Squires said if a witness did anything in breach of evidence in another country the court would not have jurisdiction over him in that country but it would definitely come into effect in South Africa.

After waiting from 10am on Monday, forensic auditor Johan van der Walt finally took the stand again after lunch.

He was cross-examined on the role Shaik played for the ANC in Malaysia and how Shaik got the money to start his Nkobi group of companies.

The defence also put it to Van der Walt that Floryn Investments, a Nkobi subsidiary, was set up to make donations to the ANC. Van der Walt said he knew the ANC was "desperate to find ways to redeem its overdraft" at that stage.

However, he found it "odd" that a company was set up to make donations when they could just use a cheque book.

With acknowledgement to Wendy Jasson da Costa and Sapa.