The speaker of the island nation’s parliament read Stephen’s resignation to parliament.
Stephen will be replaced by Freddie Pitcher, a former minister of commerce, industry and environment, but will remain in government.
Last month, opposition member David Adeang used parliamentary privilege to read out an email, citing alleged correspondence between Stephen and a phosphate dealer in Thailand.
In the email, Stephen asked for a kickback on the sale of 25,000 cubic tons of phosphate.
“Put an extra $1 or $2 so we can get some money, what do you think,” the email said.
A former Olympic weight lifter, Stephen was elected president in 2007.
Last week, Adeang tabled a motion of no-confidence against Stephen. That motion was due to be heard, but Stephen pre-empted it with his resignation.
