RPT-S.Africa's Manuel says is not all powerful over policy

* Former finance minister says has no "big stick" on policy

* Plays down reports of government rifts

By Peroshni Govender

JOHANNESBURG, Oct 26 (Reuters) - South Africa's national planning minister Trevor Manuel said on Monday he was not all-powerful in setting economic policy.

Manuel, a former finance minister under ex-President Thabo Mbeki, is loathed by powerful unions who see him as a champion of business-friendly economic policies and fear he still wields undue influence over policy.

"For once in my deployment, I don't hold the big stick," Manuel said during a public lecture in Johannesburg.

Manuel was excluded from the cabinet's economic planning and decision making clusters last week. That, and the resignation of key government policy advisor Joel Netshitenzhe, fuelled investor concern that President Jacob Zuma's allies may be pressuring him to change policies. [ID:nLQ164822]

The country's powerful COSATU trade union federation has condemned Zuma's choice of Manuel to lead a key economic planning commission which aims to guide the country out of its first recession in 17 years.