Publication: Sunday Times Issued: Date: 2001-04-08 Reporter: Jessica Bezuidenhout, Mzilikazi Wa Afrika and Andre Jurgens Editor:

"Arms Boss Told me to Order Yengeni Car"


Publication  Sunday Times
Date 2001-04-08
Reporter Jessica Bezuidenhout, Mzilikazi Wa Afrika and Andre Jurgens
Web Link

www.sundaytimes.co.za

A manager at a company that won a R400-million slice of the arms deal has revealed how his boss dragged him into the Tony Yengeni luxury car saga. 

Michael Helbing, who was a senior manager at the European Aeronautic Defence and Space Company (EADS) said that the company's managing director, Michael Woerfel, instructed him to order a luxury car that was later registered in the name of Yengeni's wife, Lumka, on January 3 this year. 

Helbing, who was in charge of industrial participation and special projects at EADS, told the Sunday Times on Friday: "I ordered the car from DaimlerChrysler at the instruction of my boss, Michael Woerfel. "I don't question orders from Mr Woerfel. If he tells me to do something I just do it." 

Investigators into the R43-billion arms deal are probing the circumstances under which Mrs Yengeni acquired the car and Tony Yengeni, the ANC's Chief Whip, got a state-of-the-art Mercedes 4x4. Asked how the silver Mercedes-Benz C180 ended up in the hands of Lumka Yengeni, Helbing said: "Well, if you put one and one together then my boss probably sold the car to Mrs Yengeni. "I don't know why Mrs Yengeni ordered a car through us instead of going through a dealership." He said EADS got preferential prices for cars bought from DaimlerChrysler. 

EADS, a sister company of Mercedes-Benz manufacturer DaimlerChrysler, is a partner in a joint venture that will supply missile and radar technology aboard four corvettes ordered by the government to beef up South Africa's navy. Tony Yengeni's 4x4 was also originally acquired as a staff vehicle by a senior employee of the arms company, but this person has not been identified. 

This week staff at EADS said the order for Tony Yengeni's car came from DaimlerChrysler Aerospace (Dasa) in South Africa, which was headed by Woerfel. Dasa was incorporated into EADS in July 1999.

Lulama Chakela, a DaimlerChrysler spokesman, said her company had no record of selling a car to Lumka or Tony Yengeni. 

Documents in the possession of the Sunday Times show the Mercedes C180 was ordered by Helbing. The car is identified on computerised motor dealership records as "unit number 810045", a "staff" car. The Sunday Times made several attempts to contact Woerfel at his office, on his cellphone and through his wife. All were unsuccessful. His cellphone was answered by a "Mr Schmidt" who claimed Woerfel was about to board a flight to Europe on Friday. Schmidt said Woerfel would contact the newspaper. A woman identified as "Mrs Woerfel", however, knew nothing about his trip overseas. 

Two weeks ago the Sunday Times reported that Yengeni's green ML320 4x4 was ordered by DaimlerChrysler Aerospace (now known as EADS) as a "private staff vehicle". Days after arriving in Johannesburg it was registered in Yengeni's name on October 22 1998. Yengeni has so far refused to explain why he only made a financial agreement with Debis, DaimlerChrysler's Financial Services, to start paying for the 4x4, worth R359 000, seven months after it was registered in his name. 

EADS has a 33% stake in Reutech Radar Systems, a Stellenbosch-based company that secured a R220-million contract to provide radars for the four corvettes. EADS is a joint venture between DaimlerChrysler Aerospace, the French company Aerospatiale Matra, which won a R200-million-plus contract to supply Exocet missiles for the corvettes, and Construcciones Aeronauticas of Spain. 

Widespread allegations of corruption have plagued the arms deal. The government has appointed three agencies to investigate. They are headed by the National Director of Public Prosecutions, Bulelani Ngcuka; Auditor-General Shauket Fakie; and Public Protector Selby Baqwa. The three men called journalists to an extraordinary meeting in Pretoria this week, where they confirmed that an investigation into Yengeni had been under way for some time. 

"At this stage it looks like there might be some criminal prosecutions," said Ngcuka. The trio said bank statements from 24 people were being investigated. They hoped their investigation would be completed by July and a report would be handed to Parliament. 

DaimlerChrysler's Chakela refused to say if the cars bought by EADS were sold at a discount when she was contacted at 4.30pm on Friday. She claimed DaimlerChrysler was closed for the weekend. "You are not getting anything from me. You can't call me at five on a Friday afternoon. I'm in my bathroom and you can print that in your Sunday Times," she said. Asked to explain Helbing's connection, she said: "Helbing works at EADS. This has nothing to do with DaimlerChrysler." 

But Helbing, who previously worked for Dasa, was transferred from EADS to DaimlerChrysler SA this week. 

Late Flash 

Weapons firm admits it got cars for 30 VIPs

 LAST night the arms company EADS admitted that it had been involved in getting cars for politicians and would cooperate in the arms probe. In a dramatic fax to the Sunday Times, the company said it had "rendered assistance to approximately 30 VIPs in the past three years in obtaining vehicles". 

"The sectors concerned were the civil airlines, defence, electronic and related industries, diplomatic and political officials," the statement said. 

The startling admission followed extensive attempts by the newspaper to question managing director Michael Woerfel about his involvement in ordering a car for the wife of the ANC's Chief Whip, Tony Yengeni. 

The statement said:

"Confirming its full cooperation with and support for the investigation into the South African arms acquisition, EADS is submitting all information at its disposal to the authorities. "This includes information on assistance rendered by EADS to approximately 30 VIPs in the past three years in obtaining vehicles." 

The company, which is linked to the Mercedes-Benz manufacturer, DaimlerChrysler, said the assistance included price discounts and speeding up delivery ahead of waiting lists. "EADS respects the due legal process currently under way and takes this opportunity to reaffirm its commitment to and ongoing support of the official investigation." 

The statement was issued on behalf of EADS South Africa by Peter Mann of Meropa Communications. 

With acknowledgement to Jessica Bezuidenhout, Mzilikazi Wa Afrika, Andre Jurgens and the Sunday Times.