Party could suspend him as an MP

CAPE TOWN The national working committee of the African National Congress (ANC) meets today to decide on the fate of former chief whip Tony Yengeni after his arrest last week on charges of corruption, fraud, forgery and statutory perjury.

Yengeni quit the party's top parliamentary post last week, and now the committee could suspend him from Parliament.

A source said yesterday that there was a strong feeling among ANC MPs that Yengeni should be suspended for the sake of the party's credibility in Parliament.

Deputy President Jacob Zuma announced last week that the ANC's national working committee would discuss the controversy surrounding Yengeni fate. While the former chief whip resigned from office last week, he said he would remain an active member of the ANC in Parliament.

ANC national media co-ordinator Nomfanelo Kota played down the committee discussion of Yengeni's standing, arrest last week and therefore his fate she saying it "could be looked at" but was not on top of the agenda.

ANC national media co-ordinator, Nomfanelo Kota yesterday said the final decision as to whether Yengeni would be expelled from the organisation rested with its highest decision-making structure, the national executive committee.

City Press quoted Yengeni yesterday as saying there was a "witch-hunt" in the ANC targeting himself, President Thabo Mbeki, Safety and Security Minister Steve Tshwete and KwaZulu-Natal leaders S'bu Ndebele and Dumisani Makhaye.

The paper also quoted him as saying he would quit politics immediately after his trial and join the private sector.

Although Kota played down the fact that the committee would discuss Yengeni's arrest last week and therefore his fate she said the matter "could be looked at," but not as top of the agenda.

Simultaneously, The trade and industry department said yesterday it would not be taking action against an official for allegedly taking a R55000 car discount. Vanan Pillay, said to have accepted the discount from European Aeronautics Defence Systems (EADS), played a critical role in the arms procurement package. process of acquiring arms worth R43bn.

Departmental spokesman Edwin Smith said a probe had cleared Pillay. "There are no disciplinary measures being taken against him. An investigation yielded that he didn't break regulations as far as disclosure is concerned."

Yengeni, after handing himself over to the elite Scorpions investigating unit last Wednesday, was later released on a R10 000 bail by the Cape Town Magistrate's Court.

Yengeni was became the first politician to be arrested in connection with the controversial arms procurement package, and the net is expected to stretch to other senior government members.

Government has been under intense scrutiny for the programme to buy fighter jets, submarines, corvettes and helicopters from Swedish, UK, German, Italian and French groups.

At the same time, It was still unclear yesterday when EADS SA MD Michael Woerfel would be back in the country for his court appearance in Pretoria this week.

Although the national prosecuting authority says his lawyers have given an undertaking that he will be in court on Wednesday, the firm was guarded.

Meanwhile, Primgro CEO Premesh Narismulu responded to reports that he said might be misleading, and said it was "strung in such a way that it might mislead the reader".

He confirmed that former government negotiator in the arms deal Jayendra Naidoo owned a 50% stake in J&J a company he said had been operating for two years.

J&J has invested in companies in the technology sector, according to Narismulu.

He said: "A minor investment in J&J's portfolio is a 2,5% stake in Primgro, a company set up in 1998, and which has a number of investments in IT, telecommunications and tourism."

Narismulu said that all aspects of J&J's business had been conducted openly and on commercial terms.  

With acknowledgment to Simphiwe Xako, Bonile Ngqiyaza and Business Day.