Another charged in SA arms inquiry

The government says the military needs modernising

A senior South African businessman has been charged with corruption and forgery, linked to the cut-price sale of luxury cars during arms contract talks.

Michael Woerfel, was the local managing director of the European Aeronautic Defence and Space Company.

He was remanded on bail in Pretoria, to appear in court again next January.

Michael Woerfel's EADS company is partly owned by Daimler Chrysler

A South African government official, Tony Yengeni, the former chief whip of the African National Congress, has already been charged with corruption in connection with the same case.

The $5bn South African arms deal, to buy aircraft, submarines and patrol boats from five European firms, has been under investigation since January.

Mr Yengeni, resigned as chief whip last week saying he needed to focus on proving his innocence.

The deal is a controversial one in a country where millions live in poverty, and since it was signed costs have escalated as the rand has lost more than a third of its value.

Mercedes

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.

ANC's chief whip (left) resigned after being charged last week

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.

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

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.