ANC treasurer general Mathews Phosa is suing Sanco leader Raymond Makamo for R1million after he accused him of being behind political instability in Mpumalanga.
Makamo is alleged to have told Ligwalagwala FM on Tuesday that Phosa was fueling and funding service delivery protests in the province.
The ANC said yesterday that Makamo would also be called to appear before a disciplinary committee. He is also a member of the party.
Phosa told Sowetan yesterday that he was suing Makamo for defamation.
"I'm also getting legal opinion with the aim of opening criminal charges against him," Phosa said.
Mpumalanga had more protests over the past year than other province.
Residents of Siyathemba near Balfour have also been protesting about service delivery and have demanded that their mayor resign.
It is the second time in six months that the township is rocked by violence.
The latest protest started on Monday morning.
Premier David Mabuza, previously attributed the protests to position mongering.
He said some people where trying to win popularity so they could contest the next local elections before the time.
Phosa, who was the first premier of the province in 1994, was at some stage alleged to be part of people who were planning to topple former president, Thabo Mbeki.
National ANC spokesperson Jackson Mthembu yesterday said Makamo's comments were baseless and lacked substance.
"The ANC would like to dismiss with contempt allegations made by Makamo.
"We are even shocked and infuriated by allegations that Phosa paid journalists to write negative stories about the province," said Mthembu.
"These allegations by Makamo are in our view meant to tarnish the good name and image of our treasurer general."
Mthembu, who was a speaker of the Mpumalanga legislature before he was redeployed to head the party's communication unit at Luthuli House said Makamo should have approached the party with the allegations.
He said the failure by Makamo to approach the ANC and substantiate his allegations, could be interpreted as an attempt to bring the party and its leadership into disrepute.
"The ANC will then deal with this matter in a manner consistent with its constitution," Mthembu said.
Although Makamo's utterances have been recorded, he denied that he mentioned Phosa by name.