Tony Yengeni has sold the luxury 4X4 Mercedes at the centre of corruption claims linked to the controversial arms deal - and splashed out on a R330 000 Volvo convertible.

The Sunday Times reported that the former ANC Chief Whip was spotted a week ago cruising Cape Town's Atlantic seaboard in a turbo-charged red sports car, which he bought after trading in his state-of-the-art ML320 Mercedes.

The 1998-model Mercedes is now on offer for R259 950 in a Cape Town showroom, where salesmen say it has attracted a trickle of interest.

This is the car that Yengeni is alleged to have received at a 47 percent discount from Micheal Woerfel, who has been suspended from his job as head of the European Aeronautic Defence and Space Company - one of the successful bidders in the arms deal.

It is alleged that Woerfel sold him the car for R182 563, the report said. The normal price for the vehicle is about R349950.

Yengeni sold the infamous Mercedes for R220000.

The Volvo (a 2000 demonstration model) he bought is one of fewer than a dozen on Cape Town's roads.

A new model sells for around R390 000. It is the most expensive car sold in the Volvo range in South Africa.

Yengeni is facing charges of corruption, fraud, forgery, and perjury, after he allegedly received the Mercedes discount while still chairman of South Africa's joint standing committee on defence, the Sunday Times said.

Asked about his new car this week, Yengeni said: "I don't talk to the press unless you want to talk to my lawyers."