ANC provincial executive committee member Andile Lungisa could be forced to relinquish his position as he faces charges of fraud and money laundering.
The former National Youth Development Agency chairman is expected to present his case to the Eastern Cape provincial leadership today.
At its Mangaung conference in December, the ANC resolved that leaders facing serious criminal charges should of "their own volition" relinquish their leadership positions and public offices pending the outcome of the court proceedings.
Lungisa was arrested by the Hawks on Friday for allegedly defrauding the Department of Arts and Culture of R2.5-million.
He allegedly told the department he had secured the services of US R&B star R Kelly to perform at the Nelson Mandela Sport and Culture Day in August. The deal never happened as the singer had already left the country.
The department laid criminal charges against Lungisa.
On Friday, a shackled Lungisa was released on R10000 bail from the Johannesburg Commercial Crimes Court.
He appeared in court with Xolisile Guquza, Nthabiseng Sali and Thabo Shogole.
Lungisa has claimed that the charges were a result of a long-standing grudge against him by Minister of Sport and Recreation Fikile Mbalula.
Mbalula, a former ANC Youth League president, has refuted the claim as laughable and said he is considering taking legal action for defamation.
Lungisa is expected back in court on October 30.
He joins his friend Economic Freedom Fighters' Julius Malema, who faces tax evasion charges, in the dock.
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