Cape Town - The ruling by the Durban High Court on Tuesday that businessman Schabir Shaik must pay back R34m to the State has been hailed by the National Prosecuting Authority (NPA).

According to SABC radio news, Judge Hilary Squires ordered Shaik to pay the cost of the application by the National Director of Public Prosecution. He must also pay the cost of two counsel.

Shaik, who was former deputy president Jacob Zuma's financial adviser, was found guilty last year on two corruption charges and one fraud charge. He was sentenced to an effective 15 years in prison. His appeal will be heard by the Supreme Court of Appeal later this year.

NPA Spokesperson Makhosini Nkosi said the authority had noted the judgment in the matter of the State vs Schabir Shaik and others and was "very pleased" with the judgment.

"It sends a very clear message that the Prevention of Organised Crime Act (POCA) is a very effective piece of legislation that can and will be used by the State to confiscate proceeds of crimes, no matter how substantial or minor they are.

"This is one of the first major asset forfeiture cases where POCA has been tested by the courts and proven to be effective. The landmark judgment will assist in future similar asset forfeiture cases as it has set a useful precedent, said Nkosi.

The NPA would study the judgment in greater detail "and where necessary, appropriate action will be taken as a result of this judgment".

"We reiterate our position that the NPA and its Asset Forfeiture Unit (AFU) took this matter to court in fulfilling its mandate in terms of our constitution, the NPA Act and other relevant laws.

"We will continue to work on this and all other matters in the interest of justice, enforcing the laws of the Republic without fear, favour of prejudice," he said.

With acknowledgement to Sapa and News24.