Independent Democrats leader Patricia de Lille has stunned parliament with the allegation that the Nelson Mandela Children's Fund received R500 000 in 1999 from a firm that benefited from the arms deal tender.
She is a trustee of the fund.
De Lille also claimed the ANC and Community Development Foundation were two other organisations given R500 000 each by German arms multi-national Thyssen Krupp.
She told the National Assembly on Tuesday, under protection of parliamentary privilege, that the allegations were proof the ANC had received money from arms deal suppliers.
Thyssen Krupp won the tender to supply SA with four corvettes in 1999.
"Allegations that the ANC received money from arms deal suppliers have been speculation up until today. I can now confirm that on 29th January 1999 the organisations each received R500 000 from Thyssen Krupp," she said.
The funds were allegedly deposited into an account at the Credit Swiss First Boston Bank in Switzerland.
De Lille urged parliament to establish a multiparty committee to once again probe the controversial arms deal tender.
Her claims drew a strong rebuke from Defence Minister Mosiuoa Lekota, who challenged her to dispense with parliamentary privilege and make the accusations outside the chamber.
"Is she saying Mandela was a crook and was planning to steal money? I reject with contempt these assertions," he said.
In a statement to the media, De Lille said: "This revelation does not reflect on the character of Tata Nelson Mandela, whom I respect and love. I will never insult him."
The Children's Fund on Tuesday reviewed its records and, according to spokesperson Boitumelo Mdwaba, had found no proof of the alleged donation.
Attempts to track down the Community Development Foundation were fruitless and Thyssen Krupp said they could not comment.