Ex-minister threatens to split S.Africa's ANC

By Barry Moody

JOHANNESBURG (Reuters) - Former South African Defense Minister Mosiuoa Lekota threatened on Wednesday to split the ruling ANC and form a new party following last month's overthrow of former President Thabo Mbeki.

His threat was the latest move in the worst political crisis since the end of apartheid, unleashed by the ousting of Mbeki at the climax of a power struggle with ANC boss Jacob Zuma.

"It seems that we are serving today divorce papers," Lekota told a news conference after complaining about what he called undemocratic tendencies in the African National Congress, which he said had betrayed its own principles.

The ANC dismissed Lekota's move, calling it a "machination."

"We will definitely not be deterred by the formation of any new political parties," spokeswoman Jessie Duarte said.

But ANC treasurer Mathews Phosa was conciliatory.

"We don't believe the marriage has irretrievably broken down," he said, adding that the party would talk to Lekota "until we get tired of talking."

Lekota did not announce a new grouping as had been predicted although he said the dominant ruling party was near a split.

"This is probably the parting of the ways. We hope that sense may still prevail in us. If not there's no going back."

He called for a congress of forces opposed to the ANC's current policies and direction within four weeks but said he had not spoken to opposition parties.

Flanked by another ANC dissident, former Deputy Defense Minister Mluleki George, he said: "Logically it seems that this is the end of it."

Duarte said Lekota had intended to announce a party but something went wrong.

MARKETS UNAFFECTED

Investors are worried that Zuma, strongly backed by the Communist Party and trade unions, could push South African economic policies to the left if he becomes president after elections next year, as is expected.

But analysts said Lekota's announcement had not affected markets preoccupied by global financial turmoil.