The allegations that have been flying around which eventually led to my arrest are nothing but a political witch-hunt

Tony Yengeni

Mr Yengeni, who plans to remain an MP, said he needed to focus on proving his innocence.

"I cannot continue with being the chief whip of the majority party with those kind of charges hanging over my head and an impending trial. I am innocent and I will prove that in court," he told reporters.

The ANC was under pressure to suspend or dismiss the former anti-apartheid commander who was imprisoned and tortured during white rule.

The government says the military needs modernising

The $5bn arms deal to buy new fighter jets, helicopters, submarines and warships has been a controversial one in a country where millions live in poverty.

Mr Yengeni is the first politician to be arrested following a long investigation into the arms deal.

'Witch-hunt' An arrest warrant was also issued for Michael Woerfel, an official with the European Aeronautical Defence Space Company, who is currently out of the country.

As the ANC we believe in the principle of presumption of innocence until proven guilty. Should there be any truth in the allegations against Comrade Yengeni, the ANC will not hesitate to take action

ANC statement

Mr Woerfel was suspended by EADS in July for his alleged part in the deal. The company is partly owned by Mercedes Benz manufacturer, Daimler Chrysler.

EADS has admitted that it had "rendered assistance" to some 30 senior officials to obtain luxury vehicles.These included defence force chief General Siphiwe Nyanda.

When the deal was being negotiated, Mr Yengeni was chairman of parliament's defence committee.

In July, he took out full-page advertisements in newspapers in which he denied that his purchase of a Mercedes-Benz four wheel drive vehicle was linked to the weapons purchase and declared: "All is a witch-hunt."

Mr Yengeni was not asked to plead and he was released on bail of 10,000 Rand ($1,100) from Cape Town Magistrate's Court.

Half-price

Court documents allege that he received a 48% discount on his vehicle and media reports say that a total of 33 luxury cars were sold at a reduced price to senior government officials.

The ANC says it will support Mr Yengeni unless he is found guilty of the charges.

"As the ANC we believe in the principle of presumption of innocence until proven guilty. Should there be any truth in the allegations against Comrade Yengeni, the ANC will not hesitate to take action," it said in a statement.

The case resumes in January 2002 and he was forbidden from leaving the country without alerting the authorities.