Chippa United have been drawn into a fraud, corruption and theft case brought against the Nelson Mandela Bay Municipality by the Nelson Mandela Bay Ratepayers Association on Friday last week.
The club allegedly illegally benefited from a R750,000 loan from Nelson Mandela Bay Stadium managers, Access Management, to help them stage their league game against Kaizer Chiefs in August last year.
The ratepayers' association alleges that Chippa's match-day income for the August 9 game amounted to R312,979,98, which was significantly less than the money borrowed.
Access Management allegedly sent an invoice to the city on behalf of the club for a R750,000 "ticket income advance", on the premise that the money would be paid back after the game.
Acting city manager Johann Mettler said the money was not a loan but a transfer, according to an agreement the city had with the club.
Chippa United owner Siviwe "Chippa" Mpengesi denied the club asked the metro for a loan.
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