Mac Maharaj, a director of FirstRand, is to go on temporary leave after it was alleged that he took undeclared gifts during his tenure as transport minister, the group has announced.

Chief executive Laurie Dippenaar said on Thursday that the board of directors had agreed to a request from Maharaj that he be allowed to take leave of absence for three months.

The group earlier disclosed that it was considering an offer from Maharaj either to resign or to go on leave, in the wake of reports about the alleged gifts he had received.

Dippenaar said the temporary leave would allow Maharaj time to focus his attention on the allegations against him.

The Sunday Times reported at the weekend that Maharaj and his wife received gifts and payments to the value of R500 000 from Durban businessman Schabir Shaik.

Shaik is under investigation for his role in South Africa's controversial multibillion-rand arms deal with several foreign countries and governments.

The gifts from Shaik reportedly came after a toll-road contract worth R2,5-billion was given to a consortium that included Shaik's company.

Maharaj, 67, is a non-executive board member of FirstRand and of several of its affiliates.

Dippenaar earlier said the board fully supported the transparent process that Maharaj had indicated he would be following to deal with the accusations against him.

The former minister was appointed to the board of FirstRand in 1999. He was reportedly expected to help promote a favourable climate between the bank and the government on the basis of the excellent relations he still had with senior government figures.

On Thursday, Beeld newspaper said the value that FirstRand attached to Maharaj's advice was reflected in his remuneration package. At R1,014-million, it outstripped even the R769 000 and R231 000 that Gerrit Ferreira receives as chairperson of FirstRand Bank and group respectively.

With acknowledgements to Hannes de Wet, Sapa and The Star.