DURBAN - Fraud and corruption accused Schabir Shaik said yesterday it was never his intention to defraud the taxman despite gaining substantial benefits from the write-off of R1,2 million as development costs from his company's 1999 annual financial statements.

"M'lord, it is not my intention, never was and never shall be to misrepresent my financials," said Shaik in the high court here.

He blamed auditors David Strachan and Taylor for the write-off. He said he paid handsomely for their expertise.

The state alleges the R1,2m was bribe money paid to Deputy President Jacob Zuma.

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 the books.

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 Hillary Squires.

"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.

Downer asked him what motive the auditors or his financial manager Colin Isaacs could have had to do the write-off.

Shaik told Downer that perhaps he should put it to them himself.

"Who stood to benefit from the write-off," Downer persisted. He said Shaik's company stood to gain by showing an improved income statement.

Shaik was chastised twice during proceedings by Squires.

Shaik apologised but later he again told Downer, "You should have been listening", while he was being questioned about Bester.

Shaik said it appeared that there had been a "comedy of errors" in his accounting records, dating back to George Govender, his previous accountant.

Shaik was asked why the same auditors who made such a "fundamental error" with the write- off was still contracted to his company.

He said he would have a meeting with his shareholders after the trial about the matter.

Shaik was also asked why Isaacs did not know that his company was making "non- recoverable loans" to Zuma.

Yesterday, Shaik said he was a successful businessman, had never been subpoenaed by the taxman and employed more than 300 people. He would therefore not do anything unlawful to jeopardise his business.

Downer asked him how the court could believe someone who lied about his qualifications and falsified business sheets to Absa Bank to portray himself in a good light.

"There is some good in me, there is some bad in me," said Shaik.

"You mean lying about your qualifications to impress clients is one thing, lying to the taxman is another," asked Squires.

Shaik replied in the affirmative. - Sapa