Durban — Businessman Schabir Shaik stands on a precipice this morning as judgment in his fraud and corruption trial looks increasingly set to return a guilty verdict.

Uttering words that would have been music to the ears of prosecutor Billy Downer, Judge Hillary Squires yesterday proclaimed the case for a generally corrupt relationship between Shaik and Deputy President Jacob Zuma to be "not only convincing, but overwhelming".

Judgment will be completed today after a searing set of sessions for Shaik, in which his credibility as a witness was severely questioned, while the finding of the court was that the state witnesses were, almost without exception, credible.

The nervous festivity of the first inconclusive day of judgment on Tuesday gave way to a much more sombre mood yesterday as the clipped phrases of Squires' delivery made the severity of the predicament of the accused thuddingly clear.

Shaik himself entered the court yesterday with a kind of stoic cheeriness, greeting the thinning crowds with a quick call for support.

He left at lunch clearly in need of it, with the cheeriness whipped away by a bombshell statement about the "overwhelming" case against him just having been uttered by the judge and still ringing in his ears.

As the judgment rolled out, it also became clear that Squires had no intention of holding back in his assessment of Zuma's role in the process, saying "there is evidence of Shaik's readiness to turn to Zuma for help, and of Zuma's readiness to give it".

Later Squires went even further, saying it was clear that the only assistance Zuma could provide was by using his political office as he was in no position to provide financial support.

He pointed to a "mutually beneficial symbiosis" between the two, and said there was clear evidence that Zuma had on several occasions intervened on Shaik's behalf in business deals.

Even if nothing was explicitly discussed between them, Shaik must have foreseen that if he made payments to and on behalf of Zuma, that Zuma would respond.

Shaik consequently embarked on "a never-ending series of payments" because he realised the possible advantages of staying in Zuma's good books, while the payments allowed Zuma to "maintain a lifestyle beyond what he could afford".

The judge was particularly scathing about the fact that the payments continued even after Zuma was appointed deputy president and was earning a salary of over R800 000 a year.

But it was Shaik who came in for the most stick.

Evaluating Shaik's evidence, the judge outlined several instances of contradictory evidence or disturbing demeanour.

"Shaik's performance was on the whole not impressive," the judge said.

His evidence was frequently irrelevant, notwithstanding "surprising flashes of candour".

Shaik frequently extemporised his answers, and seemed to "exist in a bubble of his own preocupations and belief system".

Shaik's evidence consistently conflicted with the version of events offered by state witnesses, and Squires found the latter's testimony to be believable.

Squires said Shaik's Nkobi Holdings network was on the verge of bankruptcy, with Kobifin and ProCon Africa technically insolvent.

In securing an extension for the bank overdraft, the group had to show Absa completed accounts for the 1999 financial year and a three-year profit projection.

The report from Nkobi financial manager Colin Isaacs had brought "a swift and vigorous response" from Shaik, meaning that the businessman was fully aware of the precarious situation in which his company was poised.

Squires praised former Nkobi accountant Celia Bester as "an efficient, capable and principled person" who had attempted to restore order to "the mess" within the Nkobi accounts.

On unveiling the mystery Floryn account, she had tried unsuccessfully to establish its purpose.

Floryn was the entity through which Shaik had allegedly made his donations to the African National Congress.

Bester had also challenged Shaik on his personal loan account, warning her boss of the potential tax implications and tax evasion issues it raised.

However, she was unaware of Shaik's other payments to Zuma for rent and his children's education, and Squires was confident her high principles would not have allowed her to accept such behaviour.

Bester testified that she resigned from Nkobi as she could not accept the dubious manner in which business was conducted by the company.

Yesterday Squires, battling with a bad throat, began his assessment of count three, the second fraud charge, which revolves around the notorious encrypted fax.

After examining the state's claims and Shaik's rebuttal, Squires asked: "Where does the truth lie?

"Again the surrounding circumstances point to the answer, " he said.

And then, with unerring dramatic poise, he adjourned judgment until today.

When Squires called it a day, he was on page 122 of his 165-page judgment.

At the end of the first day of judgment on Tuesday, Shaik was visibly distraught.

By yesterday morning, he appeared listless, continuously shaking his head while listening to the judge.

By the end of the day, he was seen wiping what appeared to be tears from his eyes.

But a member of his entourage said: "It's just the effects of flu."

Immediately after the adjournment, Shaik's legal team and family members were seen huddled around Shaik outside the courtroom.

As Shaik left the building, there was a scramble as journalists and onlookers rushed to get a closer glimpse at him through his tight security web.

With acknowledgements to Nicola Jenvey, Tim Cohen and the Business Day.