Durban: Businessman Schabir Shaik is facing financial ruin after being stripped of a substantial slice of his wealth by high court Judge Hilary Squires yesterday.

But his lawyer, Reeves Parsee, said his client would continue to fight for his money, even if it meant going to the Constitutional Court.

In a judgment handed down in Durban's motion court yesterday, Judge Squires ordered the confiscation of assets belonging to Shaik and three of his Nkobi companies to the value of R34.4 million.

These, he deemed, were the proceeds and "benefits" of the corrupt relationship Shaik was found to have had with now sacked deputy president Jacob Zuma.

These were his R21m stake in African Defence Systems (secured through his shareholding in French arms company Thint), R12.7m he had earned in dividends from these shares so far, and R500 000 paid to an Nkobi company as part of its acquisition of the shares in Thint.

Judge Squires found that all these transactions had come about because of intervention by Zuma, which resulted in a partnership between Thint and Nkobi and a lucrative share in the arms deal programme.

According to a report before the court during the asset forfeiture application, Shaik's personal wealth is just more than R40m. Combined with his companies, this increases to about R70m.

Apart from imposing an effective 15-year jail sentence for two counts of corruption and one of fraud in the criminal matter, Judge Squires also imposed fines totalling R4m on several of Shaik's companies.

This, together with yesterday's forfeiture order, mounting legal costs and more costly appeals in the offing, means almost his entire financial empire is at risk.

Parsee confirmed yesterday that the asset forfeiture matter would definitely be taken on appeal.

"This order does not become effective anyway until after the appeal on the criminal convictions and sentences (in the Supreme Court of Appeals) has been finalised. But even if we lose there and the convictions are upheld, we believe we can still challenge this forfeiture order, possibly in the Constitutional Court."

So far, the state has "preserved" about R28m of Shaik's assets pending the outcome of the forfeiture application.

Asked if the State would now ask Shaik for the R6m shortfall pending appeal, court appointed curator Trevor White, of PricewaterhouseCoopers, said Thint was presently negotiating with Shaik to buy his 25% stake in the company.

"Depending on what price that is sold at, I may eventually have sufficient assets. Hopefully that will happen in the next couple of weeks. There is also another R2.9m dividend coming up."

In his ruling yesterday, Judge Squires failed to make a confiscation order of R250 000 being the bribe from the French company to Zuma which was made via one of Shaik's companies.

Shaik's appeals are only likely to be heard later this year.

With acknowledgements to Tania Broughton and the Cape Times.