Almost Half of Mbeki's Cabinet Quits in Challenge to Anc

Almost half of the South African cabinet resigned yesterday following President Thabo Mbeki's decision to quit office early after the African National Congress leadership ordered him to step down.

News that the finance minister, Trevor Manuel, who has guided years of strong economic growth, was among 11 cabinet ministers who submitted resignation letters shook international investors and cause the rand and shares on the Johannesburg stock exchange to drop sharply.

But Manuel swiftly said he was willing to remain as finance minister and had submitted his resignation only as a formality so the new interim president, Kgalema Motlanthe, who takes office tomorrow, could appoint his own team.

The markets' reaction to Manuel's letter will give pause to ANC leaders who had wanted to end privatization and put more emphasis on poverty.

Six other members of the cabinet, including the deputy president, Phumzile Mlambo-Ngcuka, appeared to have resigned in protest at the ousting of Mbeki by the new ANC leadership and his arch-rival, Jacob Zuma, and will not serve in the new government.

The resignations were interpreted by some analysts as evidence of deep splits in the ruling party.

Among the others who resigned were the minister in the presidency, Essop Pahad, who is regarded as Mbeki's enforcer and is widely disliked in the party. There was disappointment among some of Mbeki's opponents that his health minister, Manto Tshabalala-Msimang, who is blamed for some of the government's more notorious views on Aids, did not also quit.

The ANC secretary general, Gwede Mantashe, denied there was any crisis within the organization over the toppling of Mbeki. He said the mass resignations from the cabinet had created a "wrong perception".

"That is not a sign of a crisis, it is a sign of an organized organization," he said.