Johannesburg - Discovery Holdings announced on Thursday it had accepted the resignation of former transport minister Mac Maharaj who had been accused of accepting R500 000 from businessman Schabir Shaik before he quit his role as minister in 1998.

Earlier on Thursday Discovery's parent company, banking group FirstRand, announced that Maharaj has resigned as a director and an employee of the group and as a director of seven subsidiary boards on which he had been serving.

Maharaj's resignation from both groups will be effective from end of August.

The FirstRand board said it had approved payment of an amount of R1.092m to Maharaj, comprising pay in lieu of notice, leave pay, and pro-rata bonus for the year ending in June this year.

The Democratic Alliance (DA) has also welcomed Maharaj's decision to resign, saying the financial service group's image was suffering by being associated with serious allegations of corruption.

However, DA's MP Hendrik Schmidt said Maharaj should continue to co-operate with the Scorpions' investigation into the arms deal.

"He has important information to impart," he said.

"That investigation should not have any more obstacles placed in its path. The Democratic Alliance has urged... Schabir Shaik to drop his appeal against answering the questions posed to him by the Scorpions."

'Cool off'

Schmidt said the DA supports the call by FirstRand CEO Laurie Dippenaar for a "cooling-off period for ministers".

DA Chief Whip Douglas Gibson is to table a Private Members' Bill "to prevent the doors of cabinet from turning into a revolving door leading to lucrative business appointments".

Schmidt argued that many of the allegations surfacing from the arms deal related to government officials or ministers being closely linked to the contract, and then leaving the public sector and almost immediately walking into well-paying businesses associated with government enterprises.

With acknowledgements to INet Bridge and News24.