EUROPEAN Aeronautic Defence and Space Company (EADS) took the dramatic step yesterday of suspending its SA MD, Michael Woerfel, following a preliminary investigation into the "cars-for-arms" scandal.

The suspension coincides with SA's three investigating agencies finalising their probe, while German authorities have started to watch developments.

EADS has a joint head office in Munich and Paris, and is listed on the stock exchanges of the two cities and a third, Frankfurt.

EADS spokesman Christian Poppe said that the decision yesterday to suspend Woerfel with immediate effect was taken by the company's joint CEOs, Rainer Hertrich and Philippe Camus.

The decision followed the outcome of a preliminary probe by EADS's head office.

He declined to give details of the probe and said that, "for the time being", EADS did not plan further suspensions.

Another reason given for the suspension of Woerfel was to "protect" him - following the broadcasting of his telephone number and address by a radio presenter with the aim of putting public pressure on him.

Poppe said Woerfel would return to Europe, but would be available to SA investigators.

EADS was awaiting the outcome of the probe by the offices of the auditor-general, directorate of public prosecutions and public protector, before finalising its internal probe. If Woerfel was innocent, he would return to SA. His post would not be filled in the meantime, Poppe said.

He confirmed that EADS had received indications that German prosecuting authorities were following the case.  

With acknowledgement to Business Day.