African National Congress Chief Whip Tony Yengeni was arrested on Wednesday and brought before court by the crack Scorpions Unit in connection with the arms deal scandal and his Mercedes 4x4.

He was released on bail of R10,000 by the Cape Town Magistrate's Court after a brief appearance on charges of corruption, alternatively fraud, as well as statutory perjury and forgery.

Yengeni had earlier on Wednesday handed himself over to the Scorpions unit after being informed of the warrant of arrest issued against him.

Factors leading to the arrest

Yengeni is the first politician to be arrested in connection with alleged corruption in the controversial arms deal under which South Africa is to buy fighter jets, submarines, corvettes and helicopters from Swedish, British, German, Italian and French firms.

Three government agencies began probing the post-apartheid arms overhaul in January at the insistence of Parliament after Auditor General Shauket Fakie released a report saying proper procedures had been sidestepped in the tender process for the deal.

Yengeni, who chaired parliament's portfolio committee on defence when the deal was being negotiated, in July took out full-page advertisements in newspapers in which he denied that he had been bribed and declared: "All is a witchhunt".

EADS has a 33% stake in Reutech Radar Systems, based in Stellenbosch, South Africa, which won a $25 million dollar contract to supply missile and radar technology aboard the four corvettes the government has ordered.

Scorpions also aiming for EADS boss

A spokesman for the Scorpions, Sipho Ngwema, revealed a warrant of arrest had also been issued for EADS head Michael Woerfel, who is out of the country.

This had been communicated to Woerfel through his South African-based lawyers and he had already signalled that he was willing to return to face up to the charges, Ngwema said.

He is due to return from Germany to appear in court for the first time on these charges on October 10. After that it is expected that he and Yengeni will stand trial together in the same dock.

Details of the charge sheet before court

The charge sheet states Yengeni must stand trial for allegations that he:

• Received a R167,386 discount on  his luxury 4X4 vehicle from an employee of a company linked to the controversial multi-billion rand arms deal - EADS.

• Accepted the vehicle, with the intention "to use his power or exercise his influence to influence the arms acquisitions process in favour of Daimler-Benz Aerospace AG or DaimlerChrysler Aerospace AG".

• He was also expected to facilitate introductions between his co-accused, Michael Woerfel, and other roleplayers in the arms deal.

Yengeni also faces charges of:

• defrauding the company, as he is alleged to have pretended he would use his influence "when he had no intention to use his power or exercise his influence in that way".

• He faces a further charge of statutory perjury in that on June 29 this year, he gave false evidence when he was summoned to appear  before the Investigating Director of Special Operations, who is investigating corruption allegations regarding the arms deal.

Yengeni is alleged to have said that the price of the vehicle was R230,052, but that the vehicle was damaged which had resulted in  him receiving a discount.

He also claimed he paid a deposit of R50,000.

However, the prosecution claims that he paid R182,563, that the vehicle was not damaged and that no deposit was paid.

Yengeni and Woerfel - who also faces a charge of corruption - have also been charged with forgery. The State argues that:

• in October 1998 and June 1997 in Pretoria,  they falsely, and with the intent to defraud and to the prejudice of Daimler-Benz Aerospace AG, the South African Parliament and the South African government, "forged a document in writing to wit an agreement of sale in respect of a Mercedes Benz ML320".

Yengeni must next appear before the Specialised Commercial Crime Court at 8.30am in Pretoria on January 25.

With acknowledgment to Sapa, AFP, INet Bridge and Business Day.