Transport Minister S'bu Ndebele has been lauded for taking the decision to return his Mercedes Benz gift to a group of government contractors.

Opposition parties, labour unions and public service monitors said it indicated that Ndebele's conscience has shone through but President Jacob Zuma has become the focus of criticism.

On Tuesday, Ndebele announced he would return the gifts to the Vukuzakhe group of emerging contractors despite the African National Congress and Zuma informing the minister that he could legally keep them.

"We hope that this won't be an isolated incident but it will set a pattern and a precedent," said the Congress of South African Trade Unions' Patrick Craven who congratulated Ndebele for taking the statesmanlike decision.

"We welcome the decision. We think it's in accordance with the requirements of the executive members' ethics code and act," echoed the Public Service Accountability Monitors? Jay Kruuse.

The Democratic Alliance's Stuart Farrow added his comment saying Ndebele made the right decision: "At the end of the day I think his conscience should now be cleared and certainly a lot of people will be happy including us."

Meanwhile, President Jacob Zuma has been criticised for missing an opportunity to set the correct tone for his administration as Zuma told Ndebele he could keep the car as long as he followed the law.