The Durban High Court may have found businessman Schabir Shaik guilty of two counts of corruption and one of fraud, but he still maintains he is innocent.

Just over an hour after Judge Hillary Squires handed down judgment Thursday, Shaik declared his innocence to journalists and supporters outside the courthouse.

"I will walk in the light of my Lord. I am innocent. I will hold that view till the day I meet Him. Don't lose faith in our Lord because I don't," Shaik said.

Earlier he remained emotionless when Judge Squires pronounced him guilty of fraud and of contravening the Corruption Act. His wife Zulaika wiped away tears.

His brother Mo, who later told journalists the conviction was not expected, put his arm around Shaik's shoulder, and shook his head.

Shaik has been found guilty of having a generally corrupt relationship with Deputy President Jacob Zuma. Shaik paid Zuma about R1,2 million for his influence to secure business projects for his Nkobi Holdings, particularly a slice of the multi-billion rands arms deal.

The fraud conviction relates to the irregular write-off of R1,2 million in his companies' accounts, which included Zuma payments.

The second corruption conviction deals with an annual R500 000 bribe that Shaik solicited from French arms manufacturer Thomson-CSF to Zuma in exchange for protection from the probe into the arms deal.

Explaining the guilty verdict for the second count of corruption, Squires said Shaik's version - that he was not facilitating a bribe but instead a donation for Zuma's Education Trust - was "impossible and ridiculous".

"If a prize were awarded for tenacious ingenuity, this argument would be a strong contender," he said.

Furthermore, while Squires at the start of the trial emphasised that the proceedings were not about Zuma, yesterday he said the deputy president must have known about the bribes that Shaik was soliciting.

He rejected the defence's claim that there was no proof that Zuma attempted to protect Thomson-CSF from the probe into the arms deal.

Squires discussed a letter from Zuma to Gavin Woods, chairman of Parliament's public accounts committee (Scopa), opposing bringing Judge Willem Heath's special investigating unit into the investigation.

"It is almost as if the writer is taking special delight in rubbing the collective nose of Scopa, and Woods in particular, in the rejection of the recommendation. This is not the attitude of someone who is supportive of the investigation being pursued by Scopa," Squires said.

By the time Squires reached the end of his explanation of the corruption charge, there were smiles in the prosecution team's corner while the defence and Shaik looked worried.

However, when the verdict was finally announced, Shaik remained expressionless, while the prosecution team congratulated each other on their win.

Journalists and people in the public gallery waited eagerly for a response from Shaik, but he stood with his hands in his pockets whispering to his attorney, Reeves Parsee.

Afterwards, as Shaik briskly walked out of court after his bail was reinstated and increased from R1 000 to R100 000, his brothers and police officers held supporters and journalists back from communicating with Shaik.

Earlier, his defence team, led by Francois van Zyl SC, slipped out of court without being noticed by the media. However, the prosecution basked in their glory and during an informal press conference on the steps, Billy Downer SC thanked his team and investigators for their assistance. He said he could not comment further as proceedings are not complete.

After lunch, Downer informed the court that the state has applied to seize Shaik's assets.

Shaik was also ordered to surrender his passport to investigator Johan du Plooy by 10 am today.

The state will today call its first witness to testify on sentencing. The minimum sentence for corruption is 15 years' imprisonment.

Shaik supporters, many of whom followed the trial since it began eight months ago, yesterday were still in disbelief after the conviction. However, their usual comments defending Shaik's innocence changed to anger towards Zuma.

One supporter, Gloria Hlope, told The Witness that her heart went out to Shaik but there was more to the story.

"If Schabir did wrong he must face what is coming but he must not do it alone. Zuma must come too. President Mbeki must call a meeting to find out what happened," she said angrily.

At the start of the trial, Shaik told journalists that if he was convicted, "Zuma must talk".

With acknowledgements to Nivashni Nair and The Natal Witness.