Woerfel knows secrets of VIPs who bought cars from arms firm. 

THE man who gave discounted luxury cars to key players in South Africa's escalating R43-billion arms deal is now facing the full might of Germany's tough anti-corruption laws.

German national Michael Woerfel, 48, has been named as accused number two in a looming arms deal corruption trial which this week cost one of South Africa's most powerful politicians, ANC Chief Whip Tony Yengeni, his job.

Yengeni quit as Chief Whip less than 48 hours after he was released from custody on R10 000 bail from the Cape Town Magistrate's Court.

Prosecutors in Germany confirmed to the Sunday Times on Friday that they had uncovered enough evidence to launch a full-scale bribery investigation against Woerfel, who has been suspended from his job as head of the European Aeronautic Defence and Space Company.

German prosecutor Manfred Wick said on Friday: "The prosecution office Munich One has started a formal investigation on suspicion of bribery against Mr Woerfel."

Under German anti-corruption laws, anyone convicted of bribing a member of a foreign parliament faces up to five years in jail regardless of where the crime was committed.

The laws, in place since 1998, prohibit bribes to foreign officials to "obtain or retain business as well as to gain improper advantage".

Professor André Thomashausen, head of Unisa's Institute for Foreign and Comparative Law, said the decision of an SA court would have no bearing on the German probe.

Without commenting on this specific case, he said regardless of whether there was a conviction or acquittal or an accused turned state witness in South Africa, German authorities could still prosecute.

The German authorities launched a preliminary investigation into Woerfel after the Sunday Times exposed how he had helped more than 30 "VIPs" to get luxury cars at, in some cases, whopping discounts. During this preliminary investigation, enough evidence was found to proceed with the bribery investigation.

Woerfel has undertaken to fly out from Germany to appear in the Pretoria Magistrate's Court on Wednesday to face charges of corruption and forgery.

He holds the key to why these VIPs, including the Department of Trade and Industry's director of industrial participation, Vanan Pillay, Defence Force chief Siphiwe Nyanda and former Armscor chief executive Llew Swan, bought their cars through his company instead of legitimate car dealerships.

Yengeni was hauled into the Cape Town Magistrate's Court on Wednesday to face charges of corruption, alternatively fraud, forgery and perjury (lying under oath).

The case is linked to allegations of widespread corruption in South Africa's R43-billion arms deal to buy navy corvettes, submarines, warplanes and helicopters.

Woerfel hastily left South Africa in April when the Sunday Times confronted him about doling out luxury cars to Yengeni, his wife and other key players in the arms deal.

An eight-month-long investigation by the Sunday Times revealed that Yengeni had received a state-of-the-art ML320 Mercedes-Benz from DaimlerChrysler Aerospace, which later became known as EADS.

He allegedly got a 47% discount on the R350 000 vehicle while he was still chairman of South Africa's joint standing committee on defence.

The charge sheet produced in Cape Town linked the case directly to the controversial arms deal. It alleged that:

Woerfel was guilty of corruption because he gave Yengeni a R167 368 discount on the 4x4. In return, Yengeni would introduce him to influential players in the deal or try to influence the outcome of the deal in favour of Woerfel's company; and

On the other hand, Yengeni was guilty of corruption because he got the discount, a benefit to which he was not entitled.

To see how the Sunday Times broke the story of Yengeni's car, and the documents that gave the ANC's former Chief Whip away, go to www.sundaytimes.co.za  

With acknowledgment to Jessica Bezuidenhout, Mzilikazi Wa Afrika, Andre Jurgens and the Sunday Times.