The Young Communist League has accused an event management company co-owned by Kaya FM news reader, Mandisa Dlamini, of swindling it out of R250000 after failing to organise an event.
The league alleged the company, Appleseed was given R250000 to organise a fund-raising concert for the Kabelo Thibedi Trust Fund, but has so far done nothing.
Thibedi held a Home Affairs official hostage with a toy gun after waiting for his ID for more than two years.
"The matter is already with our lawyers because, from the look of things, the Trust Fund is not going to get that money back," said spokesman Castro Ngobese.
Dlamini was livid when Sowetan spoke to her about the allegations yesterday. She demanded to know where we got the information and how we linked her to the company.
She later claimed she resigned from the company after the event failed because of endless postponements by the YCL.
She handed the phone to Kagiso Nxedlana whom she said owned the company.
Nxedlana claimed he had paid artists the money up-front before the YCL decided to cancel the concert.
"I informed them I would not be able to get the money back from artists when they cancelled," said Nxedlana.
He said it was not true that the R250 000 deposited into his company account was raised by the YCL alone.
"I also sourced the funds on their behalf and they in turn deposited the money into my company account for the event," he said.
But Ngobese said when the company made its presentation, it exaggerated its credentials.
"The event was initially scheduled for September 1, but when we deposited the money the bank froze their account because it was the first time such a huge amount was deposited.
"After that was cleared with the bank, they went ahead without consulting us."