Cape Town City Manager Achmat Ebrahim has resigned, under-fire Mayor Patricia de Lille announced on Monday.

In a statement at lunchtime on Monday, De Lille said Ebrahim had tendered his resignation with effect from Friday, 12 January 2018.

"In his resignation letter, Mr Ebrahim made it clear that he is able to quite easily defend the allegations made against him in the Bowman Gilfillan, Inc report," the statement from De Lille's office said. "He further stated that, in terms of the ongoing investigations, he would furnish my office with copies of all the evidence files as they pertain to his involvement in these allegations which have already been handed to Bowman Gilfillan, Inc and which clearly show that the allegations against him are baseless.

"After almost 40 years of dedicated and loyal service with an unblemished record, he stated in his letter that his obvious primary consideration at this stage of his life was that of his personal and his family’s wellbeing."

According to De Lille, Ebrahim expressed his thanks for the excellent leadership and political guidance, stating it was a "tremendous honour for him to serve with me as the Executive Mayor".

De Lille said he also paid tribute to all of the many excellent staff in the City who contributed to make Cape Town the well-run and beautiful city that it is.

"Mr Ebrahim has an untarnished and remarkable track record of nearly 40 years as a public servant, most recently having served as the City Manager for more than 12 years during the past three terms of office," she added. "Mr Ebrahim is highly respected in the Muslim community. He has a good family name and his family is filled with respected professionals."

According to the statement, Ebrahim started his career as a public servant in the City in 1977 as a lowest level clerk.

In addition to his formal qualifications and nearly four decades of experience in local government administration, he served more than 26 years at the senior level.

He was employed at the Executive Management level for more than 20 years with responsibilities for various portfolios since 1997.

"Mr Ebrahim has an impeccable and proven track record and, for the period during which he had served as City Manager, the City earned numerous achievements and accolades including unqualified and clean audits.

"He has been instrumental in leading the City administration to be the best in the country," De Lille said. "His resignation is indeed a great loss to the City of Cape Town and its residents."

On Sunday the Democratic Alliance leadership announced that De Lille will retain her position as mayor for now, but that her powers are set to be curtailed after the party's federal executive met on Sunday and decided she would be charged with misconduct.

“The federal executive has thus resolved that the mayor be formally charged and investigated by the party’s federal legal commission,” DA leader Mmusi Maimane said at a media briefing in Cape Town on Sunday following the meeting.