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Thursday, 13 February, 2003, 10:16 GMT

Plea bargain in SA arms probe

The former chief whip of South Africa's ruling party has pleaded guilty to fraud at the start of his trial in connection with a multi-billion dollar arms deal.

However, more serious charges of corruption against Tony Yengeni will be dropped after a deal was made with prosecutors.

Mr Yengeni resigned his post as chief whip in the African National Congress (ANC) after being arrested in October 2001.

He was charged with corruption, fraud and perjury on allegations that he received a cut-price luxury car in return for ensuring a multi-billion-dollar arms deal went ahead in 1999.

Luxury vehicles

The $5bn arms deal to buy new fighter jets, helicopters, submarines and warships has been a controversial one in a country where millions live in poverty.

The European Aeronautical Defence Space Company (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.


Related to this story:
Top ANC official resigns (04 Oct 01 | Africa) The rise and fall of Tony Yengeni (03 Oct 01 | Africa) South Africa arms inquiry under way (11 Jun 01 | Africa) Zuma rejects corruption claims (10 Feb 03 | Africa) SA arms deal scandal widens (08 Apr 01 | Africa) SA arms deal under investigation (05 Apr 01 | Africa) ANC begins soul-searching (11 Jan 01 | Africa) SA army 'in racism crisis' (18 Sep 00 | Africa) BAE faces African bribery probe (28 May 01 | Business) Country profile: South Africa (10 Jan 01 | Country profiles)


Internet links: South African Government | South Africa Defence Ministry | African National Congress | EADS
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