Johannesburg: The sudden resignation from parliament of former ANC whip Tony Yengeni was the result of an intervention by ANC top brass, including President Thabo Mbeki.

It is understood that Yengeni met ANC officials on Monday last week and it was made clear to him that he should do the honourable thing and resign his seat as a member of parliament.

His resignation was expected within a few days after the Monday meeting. Although Mbeki was not at the meeting, it is understood that he was firm that Yengeni should resign after he had pleaded guilty to fraud. Yengeni was told to appreciate the gravity of his case.

This explains ANC secretary-general Kgalema Motlanthe's confidence in a statement he issued after the Monday meeting that Yengeni's conscience would guide him to make the correct decision.

On Monday Speaker Frene Ginwala differed with other ANC parliamentarians on the approach to be followed.

Ginwala had proposed to the rules committee that Yengeni be called to appear before a full plenary of the national assembly to explain his apparent lies to the house in March last year.

The ANC in parliament opposed Ginwala's call and eventually won as it was agreed that Yengeni would appear before a smaller committee of the national assembly.

Yengeni's apparent greed has cost him dearly. For a R167 387 discount on his Mercedes -Benz ML320 4x4, he has lost an annual salary of R470 000 and seems set to lose more.

It could not have been easy for Yengeni to resign shortly after noon yesterday - especially for a man who has been in denial since the scandal became public knowledge.

Yengeni admitted when he entered into a plea bargain with the state to drop corruption charges and allow him to plead guilty to a lesser charge of fraud that, besides his political career being on the rocks, he was in financial difficulties.

Explaining his finances, Yengeni said he took home a salary of R17 000 a month, of which R7 000 went to service his mortgage bond, R4 000 was used to pay for his cars, another R4 000 was used for school fees and only R3 000 remained for groceries and other expenses, which included expensive clothing. His salary, he said, was his only source of income.

Now more woes appear set to befall the man previously seen as a crown prince in ANC circles, as his resignation means he must find money to pay for these expenses.

Yengeni has to settle a debt of R311 000 which he incurred after he requested Ayanda Mbanga Communications agency to publish his denials of any wrongdoing, claiming he had not been given a discount on his car - a costly move that now appears to have been an exercise in futility. The adverts, placed in Sunday newspapers, cost R283 000.

The amounts came to light when an invoice from attorneys Chuene Kwinana Motsatse, Yengeni's initial attorneys of record, to Zama Resources, was leaked to the media.

It is believed Yengeni owned about a million shares at Zama, a company that won a controversial multi-million forestry tender which was later cancelled by Public Enterprises Minister Jeff Radebe amid allegations that a chief director was paid R50 000 at a time when he considered bids for the forestry deal.

It is also on the public record that the "Gucci Socialist" had a huge discount of R167 387, which represent a savings of 47%, for a car that was worth R349 950.

It is also a matter of record that the cash-strapped Yengeni still owed R800 000 to Chuene Kwinana Motsatse, who opted out of the case after Yengeni failed to pay. He pleaded poverty in court and asked Magistrate Bill Moyses to give him a lenient R1 000 fine, which is what he said he could afford.

As he goes through this turmoil, Yengeni will be remembered as a man who lost a lot for very little.

Even his current attorney, Viwe Notshi, acknowledged: "The benefits he received have been eroded."

Democratic Alliance chief whip Douglas Gibson said last night that in terms of rules governing remuneration of parliamentarians, Yengeni would not be paid his pension until he was 50. Even this, Gibson added, would be a negligible amount for a man of Yengeni's taste.

Motlanthe said. "The African National Congress welcomes the decision by Tony Yengeni to resign. This is the correct action for him to take under the circumstances".

He is to face an ANC disciplinary hearing at a date to be announced.

March 26, 2001: The day after the initial story was published, Yengeni said he was considering legal options. "I will not submit myself to a witch-hunt by the Sunday Times. There is a due process of law under way into the so-called arms deal. I respect this process. I will submit myself fully to it as well as fully co-operate with the investigation."

March 28, 2001: "This is a strain on me and my family. But I'm strong because I know that I am clean. And I have had a lot of support from friends, family and comrades."

March 31, 2001: "If you cast doubt in the minds of the people about me, how can I go back to them and ask them to vote for the ANC? They will say you are corrupt, bribed by cars and money. The perception is being created that ANC leaders are corrupt, not trustworthy - that they are crooks. It's me today, but the attacks are going to move to other ANC leaders."

February, 2003: "My failure to disclose the benefit constituted a breach of my duties and was prejudicial to the integrity and reputation of and trust in parliament."

With acknowledgements to Makhudu Sefara, Rapule Tabane and Cape Times.