Deputy President Jacob Zuma ceded his pension to fraud and corruption accused Schabir Shaik, the Durban High Court heard on Wednesday.

State witness Ahmed Paruk said Shaik had told him he had cession of Zuma's policy, when the deputy president's name came up in a conversation.

Paruk works for the auditing firm David Strachan and Taylor, which was first contracted to audit the books of Shaik's company in 1999 and continues to prepare the financial statements of Nkobi Holdings.

Paruk told the court that it was illegal to cede a pension. According to financial records Shaik had made payments on behalf of Zuma, such as paying school fees. He said Shaik had made it known that he was the deputy president's financial adviser.

Paruk also said there was a sub-account, in Zuma's name, attached to a loan account held by Shaik at Kobifin, another of his companies.

Paruk's testimony relates to a fraud charge against Shaik.

The trial continues.

With acknowledgement to Sapa.