Shaik blames auditors

2005-03-02 12:23

Durban - Despite blaming his auditors for the illegal write-off of R1.2m from his company's books, fraud and corruption accused Schabir Shaik still employs them.

He told the Durban High Court on Wednesday he would meet with his shareholders after the trial to discuss his auditors' contract.

Shaik had blamed the David Strachan and Taylor auditors for the development costs write-off, which also extinguished loan accounts in the names of Shaik, Floryn and Clegton.

The State alleges the R1.2m was paid to deputy president Jacob Zuma and in exchange Shaik used Zuma's political influence to further his business interests.

Shaik said he first became aware of a possible "problem" in his books when he received a resignation letter from his former accountant Celia Bester.

Bester said in the letter she was unable to put through the development costs in her journal.

Shaik then called a meeting with his auditors, set the agenda and then left them to discuss the issue.

"You don't know what happened at the meeting. For all we know they could have had a game of poker," said Judge Hilary Squires.

Shaik said he paid the auditors a handsome sum to rely on their expertise.

"When you signed the 1999 financials, what did you think became of the loan account?" asked prosecutor Billy Downer.

"I did not apply my mind to the loan account at that time," said Shaik.

He said he had no basis to query the financials and that he merely had to sign it.

- SAPA