The Eastern Cape provincial government gave R540,000 to the National Youth Development Agency, but it was instead used to fund the ANC Youth League.
According to weekend media reports, the money was intended to fund eight "youth summits" organised by the NYDA.
City Press reports that although these summits were held, once the NYDA had completed its work, the youth league took them over.
ANCYL conferences were held in May and June last year at the same venues as the NYDA summits, using the same funds and service providers, and even the same delegates.
ANCYL provincial secretary, Mziwonke Ndabeni says the league has paid its own way, but failed to provide proof to the newspaper.
City Press also reports, in the same edition, that NYDA chief executive, Steven Ngubeni, allocated a R22 million catering contract to his wife's uncle.
