A key witness in the case of Durban businessman Schabir Shaik is refusing to come to South Africa to give evidence.

David Wilson, a British citizen, said he did not wish "to embarrass the government of Malaysia". He also had been advised by his former employers not to come to SA.

Wilson has been living in Malaysia for the past 20 years.

Now the state wants the court to accept sworn statements he has made.

In a day of understated drama at Shaik's corruption and fraud trial on Tuesday, Wilson's statement was sealed by the court until a decision is taken on whether to allow it into evidence.

Shaik's counsel, Francois van Zyl SC, accused the state of attempting to "create atmosphere" at the trial. He said that releasing details of Wilson's statement at this stage would "simply not be fair" to his client.

Lead prosecutor Billy Downer SC agreed to the sealing of the statement. He denied he wished to do any more than attempt to hand in evidence from a witness.

Between 1996 and 1997 Wilson was a pivotal figure in negotiations between Shaik's Nkobi group of companies, the Renong group of Malaysia, and Deputy President Jacob Zuma, then KwaZulu-Natal's MEC for economic affairs and tourism.

Forensic auditor Johan van der Walt, during evidence, had devoted a number of pages to Wilson in his extensive report analysing the business dealings of Shaik and the Nkobi group.

Summarising, he had pointed out that the Point Development was a project to build and establish a R100-million waterfront development in the harbour areas of Durban. The project was identified as an area for investment by the Renong group of companies from Malaysia.

"The involvement or attempted involvement in the project from an Nkobi group point of view was at the instance of the group, and Renong did not invite the Nkobi group to participate in discussions regarding investment opportunities," Van der Walt wrote.

He said in his report that evidence at his disposal had led him to conclude that Zuma "attempted to assist in involving the Nkobi group as part of the shareholding in the Point Development".

He added: "Shaik ostensibly referred to the approval of the composition of the shareholders by Zuma during his negotiations with Renong."

Van der Walt said it would be "fair to conclude" that the relationship between the Nkobi group of companies and Renong terminated in February 1997 as far as the Point Development was concerned.

The development itself never got off the ground.

Special investigator Isak du Plooy told the court of Wilson's U-turn about giving evidence.

He and one of the advocates in the prosecution's team, Anton Steinberg, went to Malaysia to see Wilson. They met at the SA High Commission's offices in Kuala Lumpur.

"He was positive and co-operative. He said there were more documents, which he would try to locate. We took notes and drew up a statement for him to sign," said Du Plooy.

"He also agreed to make a supplementary affidavit if he found the other documents. Wilson appeared to have a very good recollection."

Du Plooy said that in May Wilson let him know by email that he had found the additional documents. A statement was taken and the documents and the supplementary affidavit were mailed to SA.

At that stage Wilson was prepared to come and give evidence, said Du Plooy, but on October 20 he changed his mind.

Du Plooy read out an e-mail written to the investigators by Wilson: "I am advised that it is not appropriate to give evidence. I do not wish to cause embarrassment to the government of Malaysia. I will not be present at the trial."

In November, Wilson told Scorpions investigators that Renong had advised him not to attend the trial.

The trial continues.

With acknowledgements to Estelle Ellis and The Star.