Johannesburg – The investigating team heading the R43 billion arms deal probe is investigating the records of car purchases of all Krygkor employees and the departments of Defence, Trade and industry and Finance over the last three years.

This follows SANDF chief General Siphiwe Nyanda’s admission that Michael Woerfel, managing director of the European Aeronautic Defence and Space Company (EADS) “organised” a “bargain” for him when he wanted to trade in his old Mercedes Benz. Reports in the Sunday Times suggest that Nyanda acquired his new S320 Mercedes Benz – usually priced at R500 000 – at a discount of R150 000, while EADS purchased the car as staff vehicle.

Nyanda apparently also acquired another cheaper model in this manner in 1998.

EADS will be subcontracting the supply of weapons systems for the Navy’s new corvettes to the tune of R400 mllion.

Sources close to the probe say that Nyanda was co-chairperson of one of the weapons’ selection committees when the arms deal was being negotiated.

Investigators are checking the dates of purchases, manufacturers and motor vehicle financing of employees who have bought cars since that year. This is to establish whether they had paid the full price or not.

The team has had frequent meetings with top officials of Mercedes Benz.

Llew Swan, former head of Krygkor and Vanan Pillay, until recently director of counter trade at the Department of Trade and Industry admitted buying cars on the same motor benefit scale, but thought nothing wrong with this practice.

Swan and Pillay were part of the Krygkor’s negotiating team for acquiring the arms packages.

Two years into his contract Swan, under a cloud of secrecy, quit his job at Krygkor in 1999 after he was head-hunted for the arms procurement process. He still works as a consultant for Krygkor.

With acknowledgment to Erika Gibson and Beeld.