The Democratic Alliance on Friday lauded Defence Minister Mosiuoa Lekota for reversing the appointment of Seth Phalatse as chairman of the Armscor board.

"One important feature has been the fact that minister Lekota has shown admirable flexibility; having made a mistake he was big enough to reverse the decision.

"For this he deserves to be complemented," DA spokesman Hendrik Schmidt said.

Earlier, it was reported that Lekota had "bowed to public pressure" on Thursday and reversed his controversial appointment of the former chairman of the Strategic Fuel Fund (SFF).

Business Day newspaper said Lekota's decision followed an outcry over Phalatse's appointment last week because of his role in a contract, uncovered earlier this year, between the SFF, international oil trading company Trafigura, and its South African joint venture operation, High Beam International.

The deal, which a state investigation concluded had effectively privatised the country's oil procurement function without government's knowledge, was allegedly brokered by Phalatse and then Central Energy Fund (CEF) chairman Keith Kunene.

Phalatse is reported to have admitted taking a bribe as part of the deal and is expected to receive indemnity from prosecution in return for his testimony.

He was fired as a result of the deal.

Schmidt said in a statement he believed, however, that Phalatse should not have been considered for the position in the first place.

"What sort of country is this where one minister fires an official for dishonesty and maladministration and another minister rushes in to appoint the disgraced official to another high position?"

In view of the present investigation into the multi-billion rand arms deal under the guidance of the Public Protector, it was unfortunate that Lekota had not initially give the appointment of the chairman of the Armscor board the attention it deserved.

"The government has taken a step in the right direction by not appointing Mr Phalatse," Schmidt said.

Meanwhile, Armscor board member Sindi Mabaso has been appointed as acting chairwoman.

With acknowledgements to Sapa.