Europe’s biggest aircraft company has suspended a senior executive in its South African operations, the first prominent victim of a corruption scandal surrounding a pounds 4 billion arms deal.

Michael Woerfel, managing director of the South African subsidiary of EADS, the European Aeronautic Defence and Space Company, was recalled to Europe for providing large discounts on 33 cars for senior South African government figures.

The opposition called on President Thabo Mbeki’s government to take similar action against officials, politicians and military commanders who benefited from the discounts. The African National Congress’s policy has been not to take action before the conclusion of a national inquiry, which critics have dismissed as a ``cover-up’’.

The pressure on the government increased Monday when one of South Africa’s leading retail banks challenged a version of events given by an ANC politician at the centre of the scandal.

In his statement, Tony Yengeni, the ANC chief whip, said he had applied for a finance deal from Standard Bank to cover the cost of a discounted Mercedes Benz jeep provided by Mr Woerfel.

Mr Yengeni made the statement following allegations that he had been given the car. At the time he acquired the vehicle he was chairman of the parliamentary defence committee and Mr Woerfel’s firm was bidding for a large defence contract.

A spokesman for Standard Bank said the company had no record of Mr Yengeni applying in person for a loan to cover the cost of the car. ``We have checked our records and none were found referring to Mr Yengeni in his private capacity,’’ he said. - The Daily Telegraph