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My Profile What's ahead? Reuters Central European Investment Summit Get Exclusives You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Environment Health Science Special Coverage Video Pictures You Witness The Great Debate Blogs Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters You Witness News Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters ANC defectors to form new party in South Africa Sat Nov 1, 2008 4:50pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Paul Simao JOHANNESBURG (Reuters) - A breakaway faction of South Africa's ruling ANC decided on Saturday to form a new party to contest elections next year, a move that could dramatically reshape the country's post-apartheid political landscape. The rebellion by members loyal to former South African President Thabo Mbeki, ousted by the ANC in September, has thrown the traditionally united party into disarray and stoked fears of rising instability in Africa's richest economy. The new party will be launched in South Africa's Free State province on December 16, Mbhazima Shilowa, a Mbeki ally and former provincial premier, told several thousand delegates at a convention in Johannesburg. A name for the party has not yet been chosen. "I stand here today on behalf of the preparatory committee to say not only do we intend to tackle it (the ANC), we intend to win the next election," Shilowa, who resigned from the ANC last month, said to loud cheers from the crowd. Mbeki was defeated by Jacob Zuma in a bitter contest for the ANC leadership in 2007 and then ousted by the party nine months later. Zuma is the front-runner to take the presidency in next year's election. Mbeki has declined to support the breakaway party, but has also said he does not want to be part of the ANC election campaign. Earlier, former Defence Minister Mosiuoa Lekota, another prominent ANC defector, said the ANC appeared set on interfering in state institutions and enriching its leaders as white minority governments had done during apartheid. "The threat the nation faces is that we will see the reaffirmation of important elements of that terrible legacy under our new masters," he told the delegates. "We are ready and we will stand up and fight." Lekota, seen as one of Mbeki's most faithful ministers, resigned from cabinet five weeks ago in sympathy with his former boss. He and other defectors have been organizing the framework of a new political party since then. ZUMA DISMISSIVE OF REBELS The possibility that the pro-business Mbeki wing of the ANC could bolt and join the new party comes amid investor concerns over growing trade union and communist influence in the ANC-led coalition, which has been in power since 1994. Many analysts say the ANC still commands deep loyalty, even from Mbeki supporters, and that a break-up is unlikely despite some discontent with Zuma's leadership in the business community and black middle class. Zuma has said he will not tilt government to the left or discard pro-business policies credited for nearly a decade of economic growth. The ANC leader has dismissed Lekota, who resigned from the party this week, and the other defectors as irrelevant. Continued... 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