THE Department of Trade and Industry has decided to institute disciplinary action against a senior official who received a R55 000 discount on a luxury vehicle from a company with an interest in the government's controversial arms deal.

Two weeks ago the department announced that Vannan Pillay had not contravened public service regulations in terms of disclosure, and officials said then that no disciplinary action would be taken against the former director of the department's national industrial participation programme.

At the time when the discount was obtained there had been no requirement to disclose it to the department.

However, speaking on SAFM on Monday, trade and industry director-general Dr Alistair Ruiters said action would now be taken "in the context of the Public Service Code which clearly sets out that officials must not use their position to obtain private gifts or benefits during the performance of their duties".

Pillay would not be suspended pending the outcome of his disciplinary hearing as he had already been removed from his post to another division within the department.

"His current responsibilities bear no influence on this investigation or any other matter under the industrial participation scheme. As soon as the investigation is complete we'll know what action to take."

With acknowledgement to Sapa and the Mail & Guardian.