Mo Shaik has been announced the new head of the South African Secret Service.

Shaik is the brother of convicted fraudster Schabir Shaik who was released from prison on medical parole earlier this year.

State Security Minister Siyabonga Cwele said he would take over the reigns with immediate effect.

"He [Shaik] served in the international underground structures of the ANC in Natal, his duties involved collection and analysis of intelligence at the coal face," said Cwele.

Cele also announced Mzuvukile Maqetuka would be the State Security Agency's new director general.

Gibson Njenje was appointed as the new head of the National Intelligence Agency.

The minister said there would be closer cooperation between the secret service and the NIA in future as the country's various intelligence agencies were reorganised into a State Security Agency.

"The National Intelligence Agency and South African Secret Service will continue to operate within the terms of their mandates but within a more integrated manner."

Shaik is known to be a close associate of President Jacob Zuma and is said to have played a key role in his campaigning for ANC president.