Durban: To businessman Schabir Shaik, the high court ruling admitting as evidence the encrypted fax at the centre of his trial on fraud and corruption charges is the "worst case scenario".

It meant he would have to "answer a lot more questions about information and about a fax I have no knowledge of", he said after the decision by Justice Hilary Squires yesterday.

The encrypted fax is central to the third count of corruption against Shaik. The state alleges it records an agreement for R500 000 a year to be paid to Deputy President Jacob Zuma in return for his "protection" during investigations into the arms deal.

It began as a handwritten note by Alain Thetard, former head of the South African operations of French arms company Thomson-CSF.

In his written judgment, Judge Squires said the encrypted fax was a statement that was executive in nature and "seems arguably to be the final step in the accomplishment of an agreement to pay Zuma the money indicated in exchange for his influence".

"That no sign of the received messages was found in Paris or Mauritius seems to me to be hardly surprising," the judge said.

"Anyone at a head office being advised of achievement of this sort of thing - if it was, in truth, the arrangement to pay a bribe - would normally... leave no sign of it lying about."

Telkom billing records, however, reflected that such transmissions had taken place, Judge Squires said.

Two other documents the state said were crucial in its case - affidavits by Malaysia-based businessman David Wilson and an extract from Thetard's diary showing meetings he had in March 2000 with Zuma and Shaik - were also admissible.

The defence has confirmed that such a meeting took place here.

It insists, however, that the meeting was to arrange funds for the Jacob Zuma Education Trust.

Francois van Zyl, for the defence, opposed admitting Wilson's affidavits on the grounds that, other than facts, they contained opinions and "character assessments".

Judge Squires ruled, how-ever, that just because a document contained some statements that were not facts did not mean the whole document should be excluded.

Wilson was a former director of Renong, a company initially involved in the Point Waterfront development here.

His evidence relates to his company's search for a black economic empowerment partner and how Shaik tried to secure this contract by using his connections with Zuma. This evidence relates to the second count of "general corruption" against Shaik.

In one of his affidavits Wilson said that in the last quarter of 1996 he met Shaik and Zuma at Shaik's flat in Durban.

At the time Zuma was the MEC for economic affairs and tourism in KwaZulu-Natal.

The meeting came after Zuma wrote to the chairman of Renong saying he was "extremely concerned" about the project and keen to assist his company.

Wilson said Zuma was "clearly uncomfortable" at the meeting. Wilson had the impression "from (Zuma's) demeanour, the substance of the meeting and the manner in which it proceeded that he was there under sufferance".

Wilson said Zuma was un-happy with the people nominated to represent the empowerment interest and "stressed repeatedly" that Shaik would be a good partner for the job.

In his affidavit, Wilson said it had become "increasingly clear" that Shaik had some hold over Zuma. Zuma had also mentioned that Shaik had helped him. Wilson's "strong impression" was that the help was financial.

Shaik is Zuma's financial adviser and the pair were friends during the struggle.

After the court adjourned yesterday, Billy Downer, SC, who is leading the prosecution, said: "We've been on track all the way through and things are still going according to plan."

Downer has closed the state's case. About 40 witnesses were called in about four months of exhaustive evidence.

Shaik's lawyers are to begin their defence case on Monday.

With acknowledgements to Wendy Jasson da Costa and the Cape Times.