Cape Town - The government on Wednesday moved to salvage the integrity of its controversial multi-billion rand arms deal following the arrest of ANC Chief Whip Tony Yengeni on charges of corruption.

"We remain confident however that the process of primary contracting which was the core function of government, was water-tight enough to obviate possibilities of corruption," it said in a statement.

Government was awaiting a report from the three agencies responsible for investigating the deal and only then would determine "appropriate responses".

Yengeni was on Wednesday granted R10 000 bail after handing himself over to the Scorpions in connection with charges of corruption, forgery and statutory perjury.

The charges relate to a R167 386 discount on his luxury 4X4 vehicle allegedly facilitated by his co-accused Michael Woerfel, the suspended managing director of the European Aeronautic Defence Systems (EADS), a company with a stake in the arms deal.

EADS has promised its full co-operation with the investigation.

"The company once again confirms it has co-operated fully with investigators and continues to do so without reservation. The same applies to Michael Woerfel," it said in a brief statement.

Meanwhile, opposition parties hailed Yengeni's impending prosecution and urged investigators to extend the focus of its arms probe.

'Focus shouldn't be diluted'

Democratic Alliance spokesperson Raenette Taljaard said the focus should not be "diluted" by Yengeni's arrest.

"One swallow does not make a summer. One court appearance by Mr Yengeni on tough charges must not deflect attention away from the serious allegations against others."

Pan Africanist Congress MP Patricia de Lille - the first to publicly allege irregularities in the arms deal - urged the ANC to "do the right thing" and suspend Yengeni immediately.

"At last," she said in reaction to the arrest.

However, there was a possibility that Yengeni could be the "fall guy", De Lille warned.

She was eager to see what came out in the multi-agency report.

Speaking from Jakarta, Parliament's public accounts committee chairperson Dr Gavin Woods said the arrest was good news for the credibility of the probe.

It showed investigators were serious about getting to the bottom of the arms deal allegations.

Encouraged that probe led to action

"I am encouraged that the investigation has led to action that will obviously not be popular politically-speaking."

Woods spearheaded the committee's original call for a multi-agency probe into the deal and said he expected a number of other arrests soon.

Former ANC MP Andrew Feinstein - who resigned last month citing his party's handling of the controversial multi-billion rand arms deal - said he hoped this would be the first of a series of arrests.

"This is extraordinarily good news for South Africa, for all South Africans, except for probably Tony himself and anyone else who benefitted inappropriately [from the arms deal]."

United Democratic Movement leader Bantu Holomisa said the warrants of arrest cast new suspicion over others who appeared to have also benefited from discounted vehicles.

He questioned whether Yengeni was merely mimicking the behaviour of his seniors.

"In this regard renewed and vigorous attention must be focused on President Mbeki, who allegedly drove an even more expensive luxury vehicle for six months, which was only returned after the public pressure on Yengeni reached its peak."

He was referring to claims in Noseweek magazine that Mbeki test drove a Mercedes-Benz for six months.

He also referred to the Chief of the SA National Defence Force Siphiwe Nyanda, who received a discounted vehicle through EADS.

The Freedom Front's Pieter Mulder said the arrests had cast suspicion on the whole weapons transaction.

"All the top officials and politicians who received luxury Mercedes Benz vehicles should be suspended from their posts, until all the investigations and prosecutions have been done," he said.

The ANC said in a statement - later echoed in a parliamentary motion - that Yengeni should be presumed innocent until proven guilty.

ANC 'recognises independence of judiciary'

ANC spokesperson Smuts Ngonyama said the party recognised the independence of the judiciary and that the law should take its course.

Should there be any truth in the allegations levelled against Yengeni, the party would not hesitate to take action.

National Assembly Speaker Dr Frene Ginwala said the decision on whether action should be taken agaisnt Yengeni was one the ANC's and not Parliament's.

After the court had made its finding, Parliament would duly consider what action, if any, it had to take, she said.

Deputy President Jacob Zuma told journalists that the ANC national working committee would decide on Yengeni's fate at a meeting on Monday.

Asked if Yengeni would remain chief whip, Zuma said that the party had not as yet had an opportunity to study the charges.

"The national working committee will take that decision," he said. 

With acknowledgment to Sapa and News24.