A former senior official of the Department of Trade and Industry, Vannan Pillay, has lost an appeal against his dismissal earlier this year for misconduct.

Pillay was fired from his position as director of the department's national industrial participation programme in May after being found guilty by an internal disciplinary committee.

He was charged with misconduct after he had received a R55000 discount on a luxury vehicle from a company with an interest in the government's controversial arms deal.

The City Press reported on Sunday that the general public service bargaining council dismissed his appeal to reverse the department's decision this week.

Pillay -- who was a central figure in negotiations regarding the multi-billion rand arms deal -- received of discounted vehicle from the European Aeronautic Defence and Space Company (EADS), a subcontractor in the defence procurement process.

Pillay bought a Mercedes C250 TD valued at R196000 for which he paid only R141000 in July 1999 from EADS.

With acknowledgement to Sapa.