/ 17 February 2002

DTI’s Pillay joins the cut-price car club

Johannesburg | Saturday

The Department of Trade and Industry’s representative in the arms deal negotiations, Vanan Pillay, has been found guilty by a disciplinary committee of contravening the public service’s code of conduct.

The DTI on Friday concluded its internal disciplinary hearing against Pillay, who allegedly received a R57 000 discount on a Mercedes-Benz from a potential bidder in the arms acquisition deal.

”The committee decided against Mr Pillay… he has indicated he would appeal the decision as part of the remedies available to him under this process,” Trade and Industry Minister Alec Erwin’s spokesman Edwin Smith said.

Pillay was among the recipients of discounted vehicles from the European Aeronautic Defence and Space Company, a sub-contractor in the defence procurement process. Pillay bought a Mercedes C250 TD valued at R196 000 for which he paid R141000 in July 1999 from Eads.

The suspended managing director of Eads, Michael Woerfel, is facing charges of corruption and forgery along with his co-accused, former African National Congress chief whip Tony Yengeni, who also received a discounted luxury vehicle from the company.

”The DTI will make further announcements pending the outcome of the appeal process,” Smith said. – Sapa