Pretoria - Former ANC Chief Whip Tony Yengeni is a rotten apple, the prosecution has told his fraud trial here, but his defence argues he is an honourable man and has been vilified by the media.

"The accused plucked the apple of privilege and favour and brought to parliament a smell of rotten apples," prosecutor Gerda Ferreira told the Specialised Commercial Crimes Court.

Ferreira said Yengeni had deliberately and repeatedly violated the trust placed in him and should be punished accordingly.

Charges against Yengeni relate to a 47% discount he received on a luxury 4x4 Mercedes Benz in 1998 while he was chairman of the joint standing committee on defence overseeing the government's arms acquisitions.

In terms of a plea agreement with the state, Yengeni pleaded guilty to the lesser charges of fraud and was acquitted of corruption. He admitted failing to declare the discount to parliament and helping to draw up a false agreement of sale.

His trial has been separated from that of co-accused Michael Woerfel, who at the time of the vehicle's purchase was head of Daimler-Benz Aerospace AG's office here.

Woerfel has pleaded not guilty to corruption and fraud.

Arguing in mitigation of sentence yesterday, Yengeni's defence counsel, Viwe Notshe, said: "He decided to fall on his sword by pleading guilty. He did the honourable thing.

"He is a first-time offender, he is family man with two children and his life is in public service. This conviction will negatively affect his political career."

Claiming that fraud was not generally seen as a serious crime, Notshe said Yengeni's offence boiled down to simple non-disclosure to parliament.

He had made the misrepresentations after the event and these should not be regarded as aggravating factors.

There had been no material loss to parliament. Also, parliament did not seem to view non-disclosure in too serious a light as it had not criminalised it.

"Despite media speculation that the crime was connected to the arms deal, we all know it's not."

The discounted 4x4 had become one of the most expensive. "The accused spent money on legal expenses ... the discount ... has been eroded."

Yengeni had been punished enough. He had endured public humiliation, lost his position as chief whip, taken a drop in salary and been "slaughtered" in the media.

A prison sentence would not be appropriate, Notshe argued. "It is an open secret that he is financially embarrassed," Notshe said of his client, who arrived at court in a BMW.

He asked that Yengeni be given a R1 000 fine and said this was all the MP could afford.

"Justice must not be delivered with a sledgehammer."

Replying, Ferreira said Yengeni had abused his position as chair of the joint standing committee on defence to arrange an "extraordinary" discount.

He had a good salary, so his motive had been greed, not need.

He had not shown remorse and changed his plea only when he could no longer afford legal representation. Sentencing is on March 19.

Speaker Frene Ginwala has asked parliament's ethics committee to resume its inquiry into Yengeni's conduct as he has pleaded guilty, SABC radio has reported. The inquiry was suspended pending the trial.

With acknowledgements to Hanti Otto and the Cape Times.