Deputy President Jacob Zuma was not and is not a shareholder of Durban businessman Schabir Shaik's Nkobi group of companies.

This will be Shaik's evidence today, his senior counsel, Francois van Zyl SC, indicated to the Durban High Court yesterday.

Shaik is on trial for corruption and fraud, which the State says was the result of a "general corrupt" relationship between Shaik and Zuma.

Shaik has pleaded not guilty.

He has said the R1 million in payments he and his companies made to Zuma were no secret. Shaik also produced a revolving credit agreement between himself and the deputy president.

A large part of Van Zyl's cross-examination yesterday of forensic auditor Johan van der Walt, who is giving evidence for the State in the trial, was focused on the commercial relationship between Shaik and the ANC.

Firstly Van Zyl pointed out to Van der Walt that it was Shaik's vision, and that of former ANC treasurer Thomas Nkobi, to obtain shareholding for the ANC in a number of structures.

This would have mimicked similar schemes that were successfully set up in Malaysia.

Previously the court heard that Shaik was impressed by the way black economic empowerment was handled in Malaysia. But, the court heard from Van Zyl, the ANC rejected Shaik and Nkobi's plans.

He handed a letter, dated May 9, 1995, to the court in which ANC treasurer general Makhenkesi Stofile indicated this.

"I hope our personal relationship will not be affected by this decision," Stofile wrote. "I have grown to respect your intellect and skills. Maybe we will still find a way to benefit from those."

The trial continues.

Van der Walt is still under cross-examination.

Mr Justice Hilary Squires is presiding.

With acknowledgements to Estelle Ellis and the Cape Argus.

More likely the title of this article should read :

'Zuma Had No Legitimate Shares in Nkobi Holdings' (just some, about 2,5%, though a nominee in Clanwest Investments (Pty) Ltd) - a "special purpose vehicle".

and/or :

'ANC Had No Legitimate Shares in Nkobi Holdings' (just some, about 10%, though a nominee in Floryn Investments (Pty) Ltd) another "special purpose vehicle".