Nicholas van Hoogstraten, a multi-millionaire, told the Old Bailey on Tuesday a supposed payment to an alleged hitman was in fact a loan.

He said he lent Robert Knapp, 55, of Abbeyfeale, Co Limerick, �2,000 when he was having trouble in getting money out of a building society account.

If I was a policeman and saw an entry of �2,000 paid for No 7 I would want to know what that was immediately - was it the seventh victim?

Nicholas van Hoogstraten

Later a diary entry referred to "�2,000 paid to Bob for No 7".

He explained Mr Knapp had offered him a print by US artist Jasper Johns - No 7 - as payment for the loan.

"He suggested reducing the loan in exchange for the Jasper Johns.

"If I was a policeman and saw an entry of �2,000 paid for No 7 I would want to know what that was immediately - was it the seventh victim?

"It was staring like a red rag, but no-one asked me.

"One reason is that they possibly knew the answer which was that No 7 reduced the loan and shows that these entries could not possibly be anything other than what I have said. It was a loan."

Carpet gift

In total Mr van Hoogstraten, 57, of Framfield, Uckfield, East Sussex, said he had lent Mr Knapp �6,000 during 1999 but there was never a specific arrangement about repayment.

Mr Knapp had also given him a Persian carpet, which he regarded as interest on the loan.

Retired businessman Mohammed Sabir Raja, 62, was stabbed and shot at his home in Sutton, Surrey, on 2 July 1999.

Mr van Hoogstraten denies conspiring with Mr Knapp and David Croke, 59, of East Moulsecoomb, Brighton, and others to murder Mr Raja between 1 January and 3 July 1999.

David Croke [second alleged hitman] means nothing to me at all

Nicholas van Hoogstraten

All three men deny the murder of Mr Raja, with whom Mr van Hoogstraten had fallen out over a loan.

Mr van Hoogstraten was speaking in the second day of the defence in the case.

He said he knew Mr Knapp's parents well, and had let them live in a cottage on his estate with Mr Knapp living in one of his properties nearby.

But in summer 2000, while on a farm in Zimbabwe, he received a message that antiques, ornaments and china had been burgled from stores and garages on his estate.

He spoke to police and conducted his own inquiries.

"When we realised the extent of what had been stolen we knew it would not have been taken on any one night.

'Ordered off property'

"The burglary had been committed to cover up the fact that maybe for days and weeks prior to that the stores had been pilfered.

"I concluded that Knapp was responsible. He had chosen the opportunity while I was in Zimbabwe. I was in a very embarrassing situation. I did not want to outright accuse him of doing it.

"I said I did not want to see him again and I wanted him out of my property. I did not want to clap eyes on him again."

Mr van Hoogstraten denied that he knew Mr Croke.

"David Croke means nothing to me at all," he told the jury.

The case continues.