Aug. 25 (Bloomberg) -- Mark Thatcher, the son of former U.K. Prime Minister Margaret Thatcher, briefly appeared in a Cape Town court after being arrested for allegedly aiding a failed coup in Equatorial Guinea.

Thatcher, 49, was released and told to provide a guarantee of 2 million rand ($300,000) by Sept. 8. He was ordered to surrender his passport and travel documents, not to leave the Cape Town vicinity without written permission and report daily to police. The case was postponed till Nov. 25.

A dozen investigators from the Scorpions, an FBI-style crime- fighting unit, swooped on Thatcher's Constantia, Cape Town, home shortly after dawn to search for documents linking him to the coup. South Africa's Foreign Military Assistance Act prevents residents of the country from planning or conducting any military acts abroad.

Thatcher ``has been co-operating with the authorities,'' Alan Bruce-Brand, Thatcher's lawyer said outside the court in Wynberg, Cape Town. ``He denies any possible wrongdoing at all.''

Thatcher is suspected of providing funding and logistical support for a failed bid to overthrow Equatorial Guinea's president Obian Nguema, said Makhosini Nkosi, a spokesman for the country's national prosecuting authority, which oversees the Scorpions.

Nguema has ruled the oil rich central African country since 1969 amid claims that he tortured political opponents. His financial affairs are under investigation in the U.S. where more than $600 million of his funds have been frozen, according to The Independent newspaper, in an article published today on its website.

Scorpions

The Scorpions had ``not ruled out the possibility'' that Thatcher may be extradited to Equatorial Guinea where a group of alleged coup plotters are on trial, although it was unlikely, Nkosi said. ``We're investigating charges of contravening the Regulation of Foreign Military Assistance Act. If someone breaks a law in South Africa, they'll be tried in South Africa and serve their sentence here.''

Thatcher is the neighbor of Simon Mann, a former SAS officer, and one of 70 men on trial in Zimbabwe for the alleged coup plot in Equatorial Guinea, according to an article posted on The Guardian newspaper's website. The men were caught after their chartered Boeing 727-100 landed to collect weapons, the website said.

``They will appear on Friday for judgment and sentencing,'' Advocate Francois Joubert, their legal representative, said in a telephone interview from Johannesburg, without elaborating further. Mann, who pleaded guilty to wanting to buy weapons in Zimbabwe as protection to guard diamonds in the Democratic Republic of the Congo, may face more serious charges, he said.

Alleged Coup

Another group of 18 men are on trial in Malabo, Equatorial Guinea, for the alleged coup attempt in March. One of the men's leaders, Nick du Toit, may face the death penalty, while the others may face life imprisonment if found guilty, according to Johannesburg-based news agency South African Press Association.

Du Toit was quoted by AFP as telling prosecutors in Malabo today that he and Thatcher met in July last year as part of a business deal. ``We talked strictly about business issues concerning the sale and purchase of helicopters,'' Du Toit was quoted by AFP as saying.

``My client has maintained that he is innocent and he is co- operating fully with the authorities,'' Advocate Peter Hodes, Thatcher's senior counsel, said in a telephone interview from Cape Town. The charges ``had something to do with providing finance for a helicopter,'' he said without being able to elaborate until he had spent more time with Thatcher and the lawyer assigned to the case.

High Commission

The British High Commission said it had been advised of the arrest of Thatcher. ``We'll offer normal consular assistance that is given to any British citizen that is arrested abroad. This is routine.'' said Nick Sheppard, a spokesman for the British High Commission, in a telephone interview from Cape Town.

``In our country we are all equal before the law,'' said Nkosazana Dlamini-Zuma, South Africa's foreign affairs minister, on the sidelines of a visit by British Foreign Secretary Jack Straw in Cape Town. She was not aware of Thatcher's arrest. ``The law must take its course.''

Thatcher is married to Diane Burgdorf and has two children. He moved to South Africa in 1995. He has a twin sister named Carol. The Margaret Thatcher Foundation in London didn't return an e-mail asking for comment.

To contact the reporter on this story: Vernon Wessels at vwessels@bloomberg.net

Last Updated: August 25, 2004 11:45 EDT