Shaik blames financial team

2005-02-24 15:29

Durban - Fraud and corruption accused Schabir Shaik has blamed his financial management team for the irregular write-off of money and the creation of non-distributable reserves (NDR) in the books of his Nkobi group of companies.

"The auditors must take responsibility for the advice they give companies like ourselves. The laws that protect them are unacceptable," said Shaik.

Shaik told the Durban High Court that at the time the transactions took place, he had no idea what an NDR was and that his financial management team had only consulted him on "exceptionally rare instances".

Shaik said he could not remember a meeting with auditor Ahmed Paruk at his offices where those entries were discussed.

Shaik said he "emphatically" denied that this meeting did occur and said it was "scandalous" to suggest that he was advised of the write-off.

On Thursday, Shaik said he had a limited knowledge of book-keeping and that the last time he had attempted this was in high school and he didn't do too well.

Last year, Shaik's accountant Celia Bester told the court that she constantly told Shaik that his business was in overdraft and on the brink of bankruptcy.

Shaik said if he was as conservative as accountants were, he would not be in business today.

The trial continues.

- SAPA