Trevor Manuel Quits Along With 10 Senior Cabinet Ministers

Trevor Manuel and 10 Cabinet ministers quit

Finance Minister Trevor Manuel is among 11 Cabinet ministers and three deputy ministers who have resigned.

Their letters of resignation had been received by President Thabo Mbeki "which, regretfully, he has had to accept", the presidency said in a statement on Tuesday.

They included Deputy President Phumzile Mlambo-Ngcuka, who earlier in the day announced her resignation from the position, to which she was appointed after ANC president Jacob Zuma was released from his responsibilities as deputy president in 2005. One of the reasons she gave was to allow a new president the opportunity to choose their own deputy.

The other resignations were of the Ministers of: Defence, Mosiuoa Lekota; Minister in the Presidency Essop Pahad; Intelligence, Ronnie Kasrils; Correctional Services Ngconde Balfour; Public Enterprises, Alec Erwin; Science and Technology, Mosibudi Mangena; Public Works, Thoko Didiza; Provincial and Local Government, Sydney Mufamadi; and Public Service and Administration Geraldine Fraser-Moleketi.

So long Trev!

Trevor Manuel: Stop Spending Money You Don't Have

'S Africans act like Americans'

Finance Minister Trevor Manuel said on Tuesday evening that South Africans were not adequately saving for tomorrow and preferred instead to consume in a US-like manner.

He said households were highly indebted and consuming in a manner that mimicked patterns in the US.

"They live on debt and are highly leveraged. It is not a basis of stability," said Manuel.

"If they are borrowing for consumption then there is something wrong in the equation," he emphasized.

Manuel said inflation targeting was a necessary policy as inflation hit the poor and those relying on a fixed salary the hardest and thus price stability was needed.