Cape Town - A former Trade and Industry Department official might well become the first casualty of the R43.8 billion arms deal debacle.

Trade and Industry director-general Alistair Ruiters will decide over the next two or three days whether to take disciplinary action against Vanan Pillay, a former director of the department.

This follows an internal probe into Pillay? acquisition of a Mercedes Benz which sells at R196 000 but which he acquired for only R141 000.

The European Aeronautic Defence and Space Company (EADS) appears to have "aided" him in purchasing the car at a reduced rate. Pillay played a central role in the government's arms procurement process which secured an lucrative contract for EADS.

EADS last week suspended its South African managing director Michael Woerfel pending the outcome of the government's multi-agency investigation into the arms deal.

The DIT's internal probe reportedly shows that Pillay did not, as he had claimed, disclose the discount he got on the car to the department? human resources unit. No details of the price reduction are apparently recorded on file.

In terms of his department? code of conduct, Pillay is required to inform his employer of any gifts or discounts he receives.

A media report states that the department? senior management was embarrassed by Pillay's failure to inform Trade and Industry Minister Alec Erwin of the acquisition ahead of his appearance before the Standing Committee on Public Accounts in connection with the arms deal.

Ruiters will discussed the matter with Erwin within the next few days, departmental spokesperson Manana Makhanya said on Monday.

A decision will also be taken whether legal advice would be obtained.

Erwin's spokesperson, Edwin Smith, on Monday confirmed that Erwin was awaiting Ruiters' decision.

With acknowledgements to Christi van der Westhuizen and Beeld.