The European Aeronautic Defence and Space Company (EADS) has suspended its South African representative while Pretoria probes allegations of corruption in the country's multi-billion rand arms acquisition deal.

"This decision will remain in force until the official investigations relating to decisions taken by the South African government in connection with the procurement of defence goods have been completed," EADS says in a statement.

EADS says its representative, Michael Woerfel, will be available "without restriction" for questioning by investigators.

The company, owned by DaimlerChrysler, Aerospatiale Matra of France and Spain's Casa, says it too will cooperate with the South African investigation.

"It is EADS policy to conduct its business in every country according to the prevailing law," it says.

South Africa is investigating up to 50 allegations of fraud and corruption in the awarding of contracts in the arms deal. It recently broadened its probe to include charges that top officials received cut-price cars from a European defence company.

The German prosecutors office in Munich has launched a formal probe into allegations that luxury cars have been used to help defence companies win contracts. EADS has an operating base in Munich.

EADS won a contract to supply radar and missile systems to four German corvettes.

The company, the parent firm of Airbus, acknowledged in April that it had arranged about 30 car deals for VIPs over the last three years but has said it had made a profit from the sales.

With acknowledgement to iafrica.com.