Pretoria - A Department of Trade and Industry (DTI) director who received a discount Mercedes Benz through the European Aeronautics Defence and Space company (EADS) may know this week whether he faces a disciplinary hearing.

Vanan Pillay, previously director of the department's national industrial participation programme, was one of a number of recipients of luxury vehicles from arms merchant turned car dealer Manfred Woerfel.

ANC Parliamentary chief whip Tony Yengeni - another beneficiary of the scheme - was arrested by the elite Justice Department investigative unit, the Scorpions, on Wednesday morning in connection with charges of corruption, fraud, statutory perjury and forgery.

Woerfel is expected to appear in court on October 10 in connection with charges of corruption and forgery.

DTI spokesperson Manana Makhanya on Wednesday said lawyers had recently handed Trade and Industry Minister Alec Erwin and his director general, Alastair Ruiters, an opinion on whether or not Pillay had broken departmental rules in acquiring the vehicle.

If he had he would face a disciplinary hearing, she said.

Erwin is currently on his way back to South Africa after accompanying President Thabo Mbeki on a state visit to Japan.

Makhanya said he and Ruiters were studying the report and could issue a statement on Pillay as early as the next few days.

The report was commissioned after a Sunday paper in late June reported that Pillay had received the vehicle at a discount.

Pillay at the time said the vehicle was purchased through the government motor finance scheme. He said the transaction was reported to the department's human resources division and that the details were on file.

But the DTI in a statement said he had only done so on June 26 this year, despite having paid R141 000 for the Mercedes C250TD valued at R196 000 in July 1999.

By that time he had already been moved to another directorship within the department. 

With acknowledgment to Sapa and News24.