Senior ANC MPs are embroiled in a legal squabble over the finances of the South African National Civic Organisation (Sanco).
ANC MP Zukile Luyenge has opened a case against colleagues Richard Mdakane and Skhumbuzo Mpanza over the alleged squandering of about R3m meant for skills development and R922,000 from the Recycling & Economic Development Initiative of SA (Redisa).
Luyenge said Mdakane, as president of Sanco, and Mpanza, as its secretary-general, pocketed money meant to pay legal fees in a case he brought to challenge Sanco's 2014 conference. Luyenge claims to be Sanco's Eastern Cape provincial chair.
KwaZulu-Natal police spokesman Lt-Col Thulani Zwane confirmed that a case of fraud had been opened at Durban North police station for investigation.
Luyenge said: "A decision that a criminal case should be opened was on the basis that we must not be seen as if we are just damaging their [Mdakane and Mpanza's] integrity or image when government has created a platform for people to report wrongdoings and afford the accused, or the alleged perpetrators of fraud and corruption in the organisation, an opportunity to clear themselves or give their side of the story."
He said he had given police evidence about the R3m meant for skills development in Sanco and the R922,000 from Redisa which was meant to pay for legal fees in Sanco's Mthatha conference dispute.
He said there were also many instances when Mpanza had instructed Roy Moodley, Sanco national treasurer and former president Jacob Zuma's benefactor, to transfer huge amounts of money to various people, including bogus service providers.
"So what we are talking about for now is not less than R5m," said Luyenge.
He called for the suspension of Mdakane and Mpanza pending the outcome of the criminal investigation.
The Sunday Times has seen copies of cheque transactions allegedly made by Mpanza between April 2 2015 and February 2 2016 which amount to R922,000 and will form part of the police investigation.
Moodley, in a letter dated August 20 from his lawyers, has demanded that Mpanza make available all statements and accounting records of the "admin" account opened by him and Mdakane "unlawfully, without any other NEC [national executive committee] member's consent".
Mpanza has been accused of running Sanco like his fiefdom. The Eastern Cape branch of Sanco has also taken Mdakane and Mpanza to court for disrupting its activities. The case has been set down for September 3...