Yengeni was convicted in 2003 of defrauding parliament by failing to disclose a discount on a luxury car from one of the bidders for an arms contract, and sentenced to a four-year prison sentence.
The Supreme Court dismissed Yengeni's appeal against the ruling and he will have to start serving his sentence within three days, SAPA, a Johannesburg-based news agency, cited his lawyer Marius du Toit as saying.
Several other high-ranking politicians, including the country's former Deputy President Jacob Zuma, have also been charged with trying to benefit illicitly from companies seeking to win contracts to supply South Africa with weapons. Zuma's trial on two corruption charges is due to resume Sept. 5.
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