President Jacob Zuma has been criticised for missing an opportunity to set the correct tone for his administration by allowing Transport Minister S'bu Ndebele to keep a controversial luxury car.

On Tuesday, Ndebele announced he would return the car, and other gifts, to a group of government contractors despite Zuma and the African National Congress telling him he could keep them legally.

The presidency's Thabo Masebe admitted that Zuma told Ndebele it was his choice whether to keep the car or not, as long as he followed the right procedures.

"The president did make the point that he didn?t see anything wrong with it as long as the minister was satisfied that he had complied with the executive ethics code," Masebe said.

The Democratic Alliance?s Stuart Farrow said his party was disappointed the decision was left to Ndebele.

The Public Service Accountability Monitors' Jay Kruuse said, "I would invite the presidency to reconsider that interpretation of the code if is indeed their interpretation."

However, the Congress of South African Trade Union's Patrick Craven argued that the president was merely following the law.

"The legal position, I'm sure, is that he was entitled to accept it but I don't think that in anyway alters the fact that the moral position was to return the gifts," Craven remarked.

The ANC has also responded, saying that public representatives should follow Ndebele's lead and act with integrity.