The SACP's former treasurer Phillip Dexter resigned out of fear of facing the row concerning an alleged R500,000 donation, the party said on Tuesday.

"This resignation is nothing else but Dexter's fear to face the charges that the SACP was going to bring against him," said the communist party's spokesman Malesela Maleka in a statement.

Dexter released his letter of resignation to the media on Tuesday, saying he had taken the decision "with a great deal of pain". Dexter, who had been suspended and faced disciplinary action stemming from the donation controversy, said in a letter that he remained committed to the aims of the SACP and the ideal of a socialist society.

"Given the seriousness of the allegations, evidence and information in our possession (on) Dexter, the SACP feels that it is duty bound to still table all this for consideration by its disciplinary committee," said Maleka.

The donation row arose from a claim by businessman Charles Modise that he gave SACP chief Blade Nzimande the money, intended for party coffers.

The cash, if it existed, was never recorded in the party books, and Nzimande has denied receiving it. Modise has since accused Dexter and former Cosatu president Willie Madisha of conspiring against Nzimande,and of using the donation débâcle to discredit the SACP leader.

The SACP said it had information about payments Dexter had made to Modise, "which we have more information about".

"We can only conclude that this resignation is an attempt to avoid facing these new revelations and, just like a jilted boyfriend, throwing mud at the SACP and its leadership.

"If he has the courage of his convictions he should have faced the disciplinary committee..."

For Dexter to claim that the charges were trumped up and cast aspersion on the work of the disciplinary committee, was mischievous, said Maleka.

"To Dexter and his co-conspirators, we want to say: 'You can run but cannot hide'."