The company involved in the multi-billion arms deal and which allegedly helped African National Congress (ANC) chief whip Tony Yengeni acquire a luxury vehicle at a huge discount has promised its full cooperation with the investigation.

Michael Woerfel, suspended managing director of the European Aeronautic Defence and Space Company (EADS), who allegedly aided Yengeni to acquire the discount, is to appear in court in Pretoria on October 10.

Yengeni handed himself over to investigators and appeared in the Cape Town Regional Court earlier today on charges of corruption, fraud, statutory perjury and forgery. The charges relate to Yengeni's alleged acquisition of a luxury 4x4 vehicle at a R167 386 discount through Woerfel.

According to the charge sheet, Yengeni allegedly received the vehicle, with the intention "to use his power or exercise his influence to influence the arms acquisitions process in favour of Daimler-Benz Aerospace AG or DaimlerChrysler Aerospace AG". He was also expected to facilitate introductions between Woerfel and other roleplayers in the arms deal, the charge sheet alleges.

EADS has a 33 percent stake in Reutech Radar Systems, a Stellenbosch-based company that secured a R220-million contract to provide radar for four corvettes. EADS is a joint venture between DaimlerChrysler Aerospace and two European companies, one of which won a R200-million contract to supply Exocet missiles for the corvettes.

Asked to react to Yengeni's arrest and the warrant of arrest issued for Woerfel, an EADS spokesperson refused to answer questions beyond her company's one-paragraph statement earlier today. "EADS has complete confidence in the investigations currently under way," the statement said.
"The company once again confirms it has cooperated fully with investigators and continues to do so without reservation. The same applies to Michael Woerfel."

DaimlerChrysler SA spokesperson Lulama Chakela denied reports earlier today that her company had instigated the investigation that led to Yengeni's arrest and the imminent arrest of Woerfel. She referred to a statement DaimlerChrysler SA made when the allegations about Yengeni's car initially surfaced. At the time it had launched an internal investigation and found no wrongdoing within the company.

Chakela said DaimlerChrysler SA, a car manufacturer, had an arms-length relationship with EADS — a conglomerate of companies in which DaimlerChrysler Germany has a small shareholding.

Earlier this year EADS admitted it had "rendered assistance" to about 30 VIPs in civil airlines, defence, electronic and related industries, diplomatic and political fields, in obtaining vehicles. It said the assistance to the VIPs included price discounts and speeding up delivery ahead of waiting lists.

With acknowledgement to Sapa and iafrica.com.