ANC chairman Mosiuoa Lekota has rejected allegations by Independent Democrats leader Patricia de Lille that the ANC and the Nelson Mandela Children's Fund benefited inappropriately from the arms deal.

Speaking in the National Assembly on Tuesday, De Lille said allegations that the ANC received money from arms deal suppliers had been speculation up until Tuesday.

"I can now confirm that on the 29th of January 1999 the following organisations each received R500 000 from [German arms manufacturer] Thyssen-Krupp - African National Congress, Nelson Mandela Children's Fund, Community Development Foundation.

"The money was paid into an account in Switzerland at Credit Suisse First Boston bank," De Lille said.

Responding, Lekota said there had been allegations relating to the defence strategic package for a long time. The government had set up an investigation to which De Lille had also been invited.

"Today she comes here, she makes an allegation that money was deposited into the account of the ANC," he said.

"Is Ms De Lille saying that the ANC was paid money for the defence strategic package? Is that what you are saying?

"Because if that is what [De Lille] is saying, she must provide evidence as to where the money came from and who paid money into the ANC's account and where the ANC made an agreement that it would get money from the strategic package."

De Lille had also made an allegation that money was paid into the Nelson Mandela Children's Fund, the defence minister said.

"Is [she] saying... that Comrade Nelson Mandela, the former president of this country, was a crook who wanted to steal money through the strategic defence package? Because if that is what she is saying, she must get out of this House and say it there."

The fund was not represented in the House and had to defend itself outside.

"She can't come and use the House or Parliament to make allegations against instances... who are innocent, who cannot speak in this House.

"And therefore I reject with contempt, and this House must reject with contempt, these assertions she's just made here," Lekota said. - Sapa

With acknowledgements to Independent Online.