President Thabo Mbeki threw caution to the wind yesterday, appointing Minerals and Energy Minister Phumzile Mlambo-Ngcuka as his deputy, despite her being implicated in a party funding scandal that still could tarnish her promising career.

The president has also courted further political trouble over the dismissal of former deputy president Jacob Zuma. Mlambo-Ngcuka is married to former national prosecutions director Bulelani Ngcuka, who began the investigation that led to Zuma’s firing last week.

Mbeki seemed unmoved by perceptions among Zuma supporters that her appointment was linked to Zuma’s downfall and her husband’s role in it. Instead, Mbeki emphasized his commitment to increasing the participation of women in government.

Government spokesman Joel Netshitenzhe said Mlambo-Ngcuka was appointed on merit, and it was irrelevant who she was married to.

This appointment appears to threaten to undermine Mbeki’s commitment to act strongly against corruption at the highest levels of government. The party funding scandal, dubbed Oilgate, is being investigated by the office of the public protector, and Mlambo-Ngcuka’s role is likely to come under the spotlight, as the opposition clamours for answers.

While Mbeki’s controversial appointment was roundly accepted by business, civil society groups and the opposition, it suggests that he is prepared to take the risk of possibly having to fire his deputy president again — so soon after sacking Zuma for corruption — should she be further engulfed by the Oilgate affair.

The scandal, which implicates Mlambo-Ngcuka and Social Development Minister Zola Skweyiya, concerns the donation to the ANC of R11m in public funds from state oil company PetroSA by Imvume Management, an empowerment company connected to the ruling party.

Imvume is reported to have paid R50 000 to a company owned by Bonga Mlambo, Mlambo-Ngcuka’s brother, and R65 000 to a construction company that carried out renovations at Skweyiya’s private residence.

The R11m donated to the ANC was part of a R15m payment made to Imvume by PetroSA for the purchase of oil condensate for Mossgas. PetroSA then paid another R15m to the supplier of the condensate.

Sandile Nogxina, Mlambo-Ngcuka’s director-general, has said the payments to Bonga Mlambo were part of a business transaction between Mlambo and Imvume CE Sandi Majali.

Meanwhile, the Zuma saga that began in late 2003 — when Bulelani Ngcuka said he would not charge Zuma with corruption despite having a prima facie case against him — seems headed for closure following the conviction of Zuma’s financial adviser, Schabir Shaik, on fraud and corruption charges three weeks ago.

The National Prosecuting Authority announced on Tuesday that Zuma would appear in the Durban Magistrate’s Court next Wednesday to face at least two counts of corruption.

Deputy Trade and Industry Minister Lindiwe Hendricks will take over as minister, and two new deputy trade and industry ministers, Elizabeth Thabethe and Rob Davies, have been appointed. They will be sworn in this afternoon.

The cabinet reshuffle was smaller than many commentators expected. Analysts believe Mbeki will announce a wider shake-up next month, following a cabinet lekgotla. It is believed the reshuffle will follow the release of a long-awaited report on restructuring government functions.

Mbeki did not take questions at the press conference, and it fell to Netshitenzhe to respond to media queries. Netshitenzhe said Oilgate had already been explained.

“I do not understand why it is still an issue,” he said. It was a party political matter, not a government one, and the ANC was dealing with it, he said.

He rejected suggestions that state structures were used to settle scores with Zuma. He was reacting to questions about Ngcuka’s role in Zuma’s political demise. “This (the question) challenges the integrity of our democratic institutions whose mandates are contained in the constitution and the law,” he said.

The appointment of two deputy ministers at trade and industry comes against the background of an investigation of the structures of the state and their reorganisation by the forum of directors-general known as Fosad. Netshitenzhe said these discussions were continuing. If further changes to government structures were to be made the president would announce them when necessary.

With ministers such as public works’ Stella Sigcau seriously ill and Ivy Matsepe-Casaburri said to be keen on retirement, another cabinet reshuffle cannot be ruled out — and may come as early as next month.

With acknowledgements to Karima Brown, Jacob Dlamini, Wyndham Hartley, Vukani Mde and the Business Day.