President Kgalema Motlanthe issued a statement Monday denying a report that he had offered suspended prosecutions boss Vusi Pikoli a large sum of money to resign.

"The presidency has taken note of media reports suggesting that President Kgalema Motlanthe had offered Vusi Pikoli a financial settlement to resign as the National Director of Public Prosecutions (NDPP).

"The presidency would like to state that President Motlanthe has made no such offer *1 to advocate Vusi Pikoli."

The Sunday Times reported that Pikoli had been offered R10 million to be reinstated, and then resign, after the Ginwala Inquiry report said it could not find evidence that he was not fit to hold office.

That was one of the terms of reference given to Ginwala for a commission set up after Pikoli was suspended.

Motlanthe said last week that he would not retain Pikoli as the NDPP because he did not properly appreciate security matters.

This was interpreted by some as latching on to a "side issue" to remove Pikoli, under whose command investigative unit the Scorpions fall.

The Scorpions have been conducting a long-running corruption investigation against ANC president Jacob Zuma, which has annoyed the ANC.

The president's decision on Motlanthe still has to confirmed or rejected in Parliament.

With acknowledgements to Sapa.