Business leadership SA (BLSA) warned that progress made by a joint effort by government‚ business an.
A task team headed by former home affairs minister Nkosazana Dlamini-Zuma has recommended that 125 ANC councillors undergo a fresh selection process and resign should they not be re-nominated as candidates by the party's branches.
The team was appointed by the party's national executive committee (NEC) to investigate allegations of irregularities and manipulation of ANC candidate lists for local government elections last year.
Should the ANC accept recommendations that the councillors be fired, a number of by-elections could be held.
The team's report was presented at the NEC meeting, that started on Friday at St Georges Hotel, south of Pretoria.
The 125 were pointed out country-wide where the team found there had been "gross violation of the guidelines, internal nomination and selection process".
"The disputes that were investigated by the task team are from 419 wards. These cover matters pertaining to alleged irregularities, manipulations as well as organisational matters. Of the 419 the task team has recommended that in 125 wards ANC processes should be redone.
"Where the incumbent councillor is nominated again through such a process they should remain in office. Where the incumbent councillor is not re-nominated through the process, it is recommend that (they) be asked to resign and a by-election be held," said the report.
The report warned that if the ANC failed to follow the recommendations, the party's leadership risked being seen to be endorsing such wrongful acts.
Most damning in the report is the finding that some councillors were not even ANC members at the time of their nomination as candidates.
"The task team came across instances of candidates only joining the ANC after being nominated. In certain instances the candidates, now incumbent councillors, have shockingly little knowledge of the ANC.
The investigation came after the ANC received complaints from structures about manipulation of lists by either local, regional or provincial leaders.