Former African National Congress chief whip Tony Yengeni was on Thursday found guilty of fraud by a Pretoria magistrate in terms of a plea agreement with the state.

In return, he was acquitted of corruption. The charges relate to a 47 percent discount he received on a luxury 4X4 Mercedes Benz in 1998.

In a written plea explanation handed up to Pretoria's Commercial Crimes Court, Yengeni admitted he acted in breach of his public duties and with the intent to defraud Parliament.

He said he convinced his co-accused, businessman Michael Woerfel, to arrange the car deal. Woerfel was at the time the head of Daimler-Benz Aerospace AG's Pretoria representative office.

"I admit that I failed to disclose to Parliament, in circumstances where there was a duty to disclose, that I received the benefit... and that I misrepresented the facts and events as set out," Yengeni's plea explanation says.

"The above misrepresentations were made with the intent to defraud Parliament." Yengeni was charged with corruption for buying a Mercedes Benz ML320 at almost half price in return for allegedly using his influence to "market" the products of Daimler-Benz Aerospace.

He faced an alternative count of fraud for failing to disclose the benefit to Parliament.

Woerfel was charged with corruption for allegedly arranging the car deal.

Daimler-Benz Aerospace was the manufacturer of the AT2000 - which was at the time being considered with two other light fighter aircraft as part of South Africa's arms acquisition process.

Yengeni was then chairman of Parliament's joint standing committee on defence.

On count three, both men were charged with fraud for alleged falsehoods in an agreement of sale drawn up afterwards to explain the special deal. In it, they claimed the car was damaged during transport and sold to Yengeni as a used vehicle without a warranty.

It also falsely stated that Yengeni paid a R50000 deposit.

Yengeni and Woerfel initially pleaded not guilty to all charges.

On Thursday, the politician changed his plea to guilty on the alternative to the main corruption charge. The charge was altered as part of the plea agreement to incorporate Yengeni's confession about fabrications in the agreement of sale - which initially formed part of count three.

He conceded the document was drawn up in a bid to deceive Parliament.

This meant Yengeni was acquitted on the remaining element of count three - which related to defrauding Daimler-Benz by means of the false agreement.

The plea agreement was endorsed by magistrate Bill Moyses.

In his written explanation, Yengeni conceded he had stood in a position of trust towards Parliament, representing the people of South Africa.

He had a duty to maintain the highest standards of propriety to ensure his integrity, as well as those of the joint standing committee and Parliament, were beyond question.

As committee chairman, he was duty-bound to act as an independent and impartial overseer of arms acquisitions -- and not to take any improper benefit.

He was compelled to act in good faith and make a full disclosure to Parliament of any personal interests which could conflict with his duties.

"The discount that I received was not available to the public, or to dealers. I realised that it was highly unlikely that I would have received the benefit had I not been a high profile person and chairperson of the joint standing committee on defence." Yengeni, who is still an MP, conceded the discount amounted to an improper benefit, and accepting it constituted an infringement of his duties. His failure to disclose the benefit was potentially prejudicial to the integrity and reputation of Parliament.

"As a result of my failure to disclose, Parliament was misled or could have been misled to believe that I was exercising my powers and performing my duties in the manner required."
He also admitted to improper conduct by publishing a newspaper advertisement which sought to justify the discount.

Recounting the history of the deal, Yengeni said he was visiting Daimler-Benz's assembly plant in Brazil on Woerfel's invitation when he learnt the company was due to release a prototype 4X4 Mercedes Benz.

"I immediately developed an interest in the aforesaid motor vehicle."
He inquired from Woerfel whether a discount could be arranged, and eventually convinced the businessman to contrive an arrangement in terms of which he paid only R182563,63 for the car.

Its retail price was R349950.

Arguments in mitigation and aggravation of sentence are to start on Monday.

Woerfel's trial is to continue separately on March 19.

Meanwhile, the Democratic Alliance welcomed Yengeni's admission that he did not act in accordancewith the high standard of conduct expected of MPs and that he was guilty of fraud.

"His admission is all the more significant, as he accepted a benefit while being the chair of Parliament's joint standing committee on defence," DA spokeswoman Raenette Taljaard said in a statement.

In her statement, Taljaard said that while Yengeni's "seemingly honest" attempt at seeking a plea agreement with the state was a step forward, it was regrettable that the state had opted to drop the corruption charge as part of the plea agreement.

"Mr Yengeni's conduct in this matter has been a disgrace. The ANC will have to deal with these new developments and consider Mr Yengeni's position in Parliament," she said - Sapa.