German authorities are now involved in a probe into South Africa's controversial multibillion rand arms acquisition deal in which top politicians have been accused of taking kickbacks from foreign arms suppliers.

State investigators in the German city of Munich on Tuesday confirmed that an inquiry had been launched into allegations of unethical practices involving the European Aeronautic Defence and Space Company (EADS) in the allegedly shady deal.

Chief prosecutor for Munich, Manfred Noetzel, in an interview with Deutsche Presse-Agentur, dpa indicated, however, that authorities would focus their attention on individuals involved in the deal and not the Netherlands-based EADS group as a whole.

"The decision has still to be made if we will work it out to the end or if another prosecutor is taking over," he said.

The EADS came under scrutiny amid media allegations in South Africa of special deals on Mercedes Benz cars for senior officials from the ruling African National Congress (ANC), diplomats and VIPs with links to the R43-billion deal.

The consortium of German, French and Spanish defence companies -- which includes the former aerospace subsidiary of German car manufacturer DaimlerChrysler is set to benefit from subcontracts in the supply of radar systems for new navy corvettes.

Munich-based EADS spokesman Christian Poppr said he had no knowledge of a German probe into the affair, however, he signalled the consortium's willingness to cooperate with authorities in Germany and South Africa in an interview with dpa.

The Johannesburg-based Star newspaper this week published a list of 33 new and used cars allegedly acquired by local VIPs through the EADS at discounted rates of up to nearly 50%.

The cars-for-arms scandal began several months ago with media allegations that the former head of South Africa's parliamentary committee on defence, Tony Yengeni had received a car as a gift from DaimlerChrysler.

Parliament's ethics committee halted its inquiry into the matter pending a multi-agency probe into the arms deal and surrounding allegations of corruption.

Several other government and business decisionmakers who have come under pressure to disclose the origins of their personal cars have meanwhile denied any wrongdoing.

"The guys at EADS get cars every year and each time they get a car, they sell their old one," the chairman of Grintek Avitronics, a company with links to the arms deal and DASA and the arms deal, Zoli Kunene, told the Star.

Kunene admitted that he bought two vehicles from EADS managing director Mike Woerfel with whom he said he had a "personal friendship".

Woerfel has reportedly already been questioned by South Africa's crack Scorpions police investigation unit over the consortium's role in the supply of cars to VIPs - a business venture that has now put its commercial reputation at stake.

Pretoria's decision to acquire defence equipment for the South African National Defence Force at a cost initially estimated at R30.3-billion in 1999 provoked widespread criticism.

Shortly after preferred international arms merchants were named, a member of parliament representing the Pan Africanist Congress said she had evidence that top officials accepted kickbacks from foreign companies competing for contracts.

Months later the auditor general, the national directorate of public prosecutions and the public protector - probe was launched.

Opposition politicians say they want EADS to explain how it came to act as "a discount car dealership" during crucial negotiations to improve South Africa's defence capability.

The EADS owed the South African public and its shareholders a clear explanation over why it had entered the business of car-selling if it did not wish to influence key players in the process of defence procurement, Democratic Alliance representative Raenette Taljaard said.  

With acknowledgment to Sapa-DPA and Business Day.