Johannesburg - A senior department of trade and industry (DTI) official who was fired by the department for obtaining a discounted car from the European Aeronautic Defence and Space Company (Eads) involved in the multi-million rand arms deal, lost his bid to get his job back after he had taken the matter to the general public service bargaining council.

Vannan Pillay, who was one of the senior officials that included former African National Congress chief whip Tony Yengeni who were accused of having received discounted luxury vehicles from Eads, had his appeal to reverse the department's firing dismissed by the council this week.

Pillay, who was appointed by the department and later promoted to the senior post of chairperson of the industrial participation secretariat, was one of the key individuals who were mandated by government to negotiate on behalf of the state with 24 bidders who tendered for the sale of arms.

Pillay bought a Mercedes C250 TD valued at R196 000 for which he paid R141 000 in July 1999 from Eads. This amounted to a R55 000 discount.

'Bad for foreign investment'

Pillay had gone to the bargaining council to reverse his dismissal by arguing the charges against him were vague and not specific and that he was denied the right to be legally represented after government refused to pay for his legal representation.

He had also claimed the chairperson of the disciplinary hearing (Brian Molefe) in the department was biased in that he was the husband of the respondent's chief operating officer (Portia Molefe) reporting to the director-general.

But the council arbitrator, Russel Moletsane SC, rejected the claims, saying there was no evidence that Molefe had discussed the case with his wife or was influenced by anyone in coming to the decision to fire him.

Moletsane, in dismissing Pillay's application, said the applicant was aware his actions had the potential to damage investor confidence in the country.

"The department of trade and industry is relied upon by the government to bring about investor confidence. Any malpractice or perceived malpractice within the department would negatively affect foreign investment and not help in reducing the present high rate of unemployment," he wrote in the judgment.

'The author of his misfortune'

"The applicant is the author of his misfortune. This testimony that Minister Alec Erwin was forced to dismiss him must be rejected with the contempt it deserves. This allegation was not substantiated.

"Given the potential danger the actions of some of the public servants created, the two offences relating to conflict of interest and accepting a benefit warrant a sanction of dismissal.

"It must serve as a deterrent to other public servants that the government has adopted a zero tolerance to corruption," said the judgment.

Suspended Eads managing director, Michael Woerfel, is facing charges of corruption and forgery along with his co-accused, Yengeni, who also received a discounted luxury vehicle from the company.

With acknowledgements to Jimmy Seepe and City Press.