ANC arrest over arms deal

Yengeni says the allegations are 'a witch-hunt'

A senior official of the African National Congress has been arrested in South Africa on charges that he profited from a controversial multi-billion dollar arms deal in 1999.

Tony Yengeni, the ANC's chief whip in parliament, is being charged with corruption, fraud, perjury and forgery on allegations that he received a luxury car in return for ensuring the deal went ahead.

As the ANC we believe in the principle of presumption of innocence until proven guilty. Should there be any truth in the allegations against Comrade Yengeni, the ANC will not hesitate to take action

ANC statement

Correspondents say that, even before the allegations of corruption were made, spending $5bn on new fighter jets, helicopters, submarines and warships was controversial in a country where millions live in poverty.

An arrest warrant has also been issued for Michael Woerfel, an official with the European Aeronautical Defence Space Company, who is currently out of the country.

'Witch-hunt'

Mr Woerfel was suspended by EADS in July for his alleged part in the deal. The company is partly owned by Mercedes Benz manufacturer, Daimler Chrysler.

EADS has admitted that it had "rendered assistance" to some 30 senior officials to obtain luxury vehicles.These included defence force chief General Siphiwe Nyanda.

The government says the military needs modernising

When the deal was being negotiated, Mr Yengeni was chairman of parliament's defence committee.

In July, he took out full-page advertisements in newspapers in which he denied that his purchase of a Mercedes-Benz four wheel drive vehicle was linked to the weapons purchase and declared: "All is a witch-hunt."

Mr Yengeni was not asked to plead and he was released on bail of 10,000 Rand ($1,100) from Cape Town Magistrate's Court.

Half-price

A spokesman for the elite anti-crime unit, the Scorpions, said that Mr Yengeni had handed himself in following discussions with his lawyers.

Court documents allege that he received a 48% discount on his vehicle and media reports say that a total of 33 luxury cars were sold at a reduced price to senior government officials.

The ANC says it will support Mr Yengeni unless he is found guilty of the charges.

"As the ANC we believe in the principle of presumption of innocence until proven guilty. Should there be any truth in the allegations against Comrade Yengeni, the ANC will not hesitate to take action," it said in a statement.

Mr Yengeni is the first politician to be arrested following a long investigation into the arms deal.

The case resumes in January 2002 and he was forbidden from leaving the country without alerting the authorities.