The weekly Mail and Guardian newspaper on Friday named the source of a R30-million arms deal bribery claim against President Thabo Mbeki, but said the man had died in a car crash last year.

A former Umkhonto Wesizwe soldier and ex-member of the National Intelligence Agency's (NIA) anti-corruption unit, Mhleli Paul Madaka, was reported to be the source of the allegations first printed in the Sunday Times at the weekend.

Madaka, 47, died last August when his car crashed into the premises of a MAN truck and bus yard in Centurion, the company allegedly involved in the bribe.

In a story headlined, "Dead men tell no tales", the Mail and Guardian reported that Madaka's allegation was included in a report on MAN Ferrostaal by international risk consultancy Kroll.

It claimed that Mbeki was paid R30-million by the German shipbuilding company to guarantee it would receive a submarine contract in South Africa's multi-billion rand arms deal.

Mbeki repeatedly denied the allegations and was considering legal action against the Sunday paper.

The Sunday Times reported on the allegation without naming the source quoted in the report. Neither did it say which company had prepared the report.

But according to the Mail and Guardian the report containing the allegation was likely to have been drafted by Kroll risk consultancy, commissioned by a party in a takeover bid involving MAN, Volkswagen and truck manufacturer Scania.

The Mail and Guardian said it had also obtained an "information note" from Madaka which backed up the allegation.

Madaka was involved in an investigation in the arms deal. The note read that both the NIA and the Scorpions had proof that Mbeki received the R30-million in cash from MAN Ferrostaal. He allegedly brought the money to South Africa on the presidential jet.

A few weeks after Madaka spoke to risk analysts about the allegation, he was killed on August 21 when his car veered off the road near the Brakfontein off-ramp on the N1.

There is evidence that he was speeding and that his blood alcohol level was seven times over the legal limit.

But some of his friends told the Mail and Guardian that he had given up alcohol, although another said he had started drinking again before the accident.

Madaka was friends with Vusi Mavimbela, who was director general of the NIA and Gibson Njenje, who was forced out as NIA deputy director general by Mbeki in the so-called hoax e-mail saga that saw director general Billy Masetlha loose his job. Madaka was also the brother-in-law of Trade and Industry Minister Mandisi Mphahlwa.

The Presidency has denied the allegations on several occasions.

"The Presidency categorically rejects all allegations made in the so-called report. The Presidency denies categorically that the president facilitated any money," Minister in the Presidency Essop Pahad told a media briefing in Pretoria earlier this week.

"In the Presidency we have decided to take legal advice and once the legal advice is given the president will take the necessary steps," he said. - Sapa

With acknowledgements to Sapa and Cape Times.