"Mr Sachs will not be leaving National Treasury immediately to ensure a proper handover to another senior official", Treasury said in a statement.
What this means is that in the middle of a "fiscal crisis", which Michael Sachs himself described as the most challenging since the global financial crisis, decision-making on the budget has been plunged into chaos.
Local media outlet, Fin24, said on Monday Sachs quit last week complaining that President Jacob Zuma was interfering in the budget process, according to the News Agency of Nigeria, NAN.
Business Leaders South Africa (BLSA) has expressed concern for the office of National Treasury, following the resignation of the DDG, Michael Sachs.
Zuma said the interministerial committee on higher education funding, led by Radebe, and Gigaba, as the lead minister in the Presidential Fiscal Committee, were processing the report.
Zuma's free-fee plan and speculation over Sachs' resignation has sparked a sell off in the rand during Monday's intra-day trade.
But Finance Minister Malusi Gigaba's spokesperson Mayihlome Tshwete says there are competent officials to replace him. The free education policy would cost R40 billion to an already constrained fiscus and put the Treasury's budgeting process under significant strain.
Sachs resigned from Treasury on Friday over claims that Treasury's budgeting processes had been usurped by a team from the Presidency and the department of monitoring and evaluation. The PFC, overseen by Zuma, is understood to be taking decisions about the budget.
Treasury is still struggling to boost economic growth and cut back on government spending.
Along with the axing of Gordhan and Jonas, Treasury's director-general Lungisa Fuzile resigned and deputy director general Andrew Donaldson retired.