Cabinet has decided to set up a new anti-corruption inter-ministerial committee to deal effectively with all incidents of corruption in the public service, government spokesperson Themba Maseko announced on Wednesday.

Briefing the media following Cabinet's normal fortnightly meeting, he said the committee would look at the Public Service Commission's report on corruption and other reports, to ensure action was taken against all persons involved in corrupt practices involving public funds.

"South Africa takes very strong exception to corruption as this is a matter that has a negative impact on the country's reputation," he said.

"We want to deal decisively with the perception that corruption is on the rise in the country and this committee will be set up to do all that is necessary to ensure that decisive action is taken against all those involved in corruption."

Maseko warned all state employees that strong action would be taken against all those involved in corruption.

The committee would be chaired by Minister in the Presidency for Performance Monitoring and Evaluation Collins Chabane.

Other members would include the ministers of the public service and administration, national treasury, local government, social development, and representatives from the security cluster.

The committee would present a report and action plan at the January Cabinet lekgotla, Maseko said.