Publication: The Star Issued: Date: 2001-10-24 Reporter: Marvin Meintjies Editor:

Letter Chokes Denial of Preferential Car Deal

 

Publication  The Star
Date 2001-10-24
Reporter Marvin Meintjies
Web Link www.iol.co.za

A document in the possession of The Star seems to contradict IFP MP Mandla Msomi's denial that he bought a car through the European Aeronautic Defence and Space Company (EADS), a company involved in the state arms deal.

The document is a letter to Msomi from Michael Woerfel, the suspended head of EADS, who is facing corruption and forgery charges relating to the sale of a heavily discounted car to former ANC chief whip and defence committee chairman Tony Yengeni.

Msomi, the former chair of the parliamentary standing committee on public enterprises, has denied he knew he was dealing with a company involved in the arms deal when he bought his cars.

'An extremely good price'

Yengeni is also facing charges of corruption, perjury and forgery relating to his acquisition of a Mercedes-Benz ML320 luxury 4x4 through EADS, allegedly at a discount of 47 percent. Woerfel allegedly sold the car to Yengeni, whose trial has been set for January next year, at a loss.

Msomi claimed he had bought two cars, a Colt 3.0 bakkie and a Mercedes-Benz E320 directly from car manufacturer Daimler-Benz - the predecessor of East London-based DaimlerChrysler SA (DCSA) - and not EADS.

DCSA is a related company of EADS through the amalgamation of DCSA's sister company, DaimlerChrysler Aerospace (Dasa), into EADS. EADS, meanwhile, has a stake in arms deal subcontracts through its shareholding in radar systems company Reutech.

When first questioned by The Star in July this year, Msomi said: "I bought from Daimler-Benz - not EADS. They were clearing their second-hand vehicles on a sale basis and I was invited to see what was in their yard in Pretoria. At no stage did I deal with EADS."

However, the document in the possession of The Star shows Msomi would have known he was dealing with Dasa and its suspended head Woerfel.

'No deal to pay for ongoing services and repairs'

The document is typed on Dasa stationery with the company letterhead, dated July 7, 1999, and indicates that Msomi tried to get Dasa/EADS to foot the bill for the maintenance of his cars.

It reads: "Dear Mandla. We hereby confirm to you that the vehicles sold to you were sold to you 'voetstoots' and at an extremely good price, with the agreement thereafter being that the payment for the first check-ups only would still be carried by us.

"However, there was no agreement that Dasa would pay for ongoing services and repairs or - a one-year free warranty.

"Kindly inform McIntosh Motors that forthcoming invoices will be settled by you directly.
"Many thanks for your understanding and co-operation. Kind regards, M Woerfel."

The signed letter was faxed to a company in which Msomi's Empowerment Trust had interests.

The Star previously reported that Msomi bought the Colt for R102 365 on December 12, 1998, for which EADS had paid R125 892. The E320 was sold to Msomi for R195 650 on December 15, 1998, after EADS had paid R250 800 for it. Both cars were used, so it could not be said that Msomi had received an extraordinary discount.

Msomi himself did not return telephone calls on Tuesday, while IFP national publicist Musa Zondi could not comment.

With acknowledgement to Marvin Meintjies, The Star and Independent Online.