The national structure of the Economic Freedom Fighters (EFF) has retracted a statement calling for the resignation of the fraud-accused acting City manager of Nelson Mandela Bay, Christopher Dyani.

National spokesperson for the EFF, Sinawo Tambo, told News24 the statement was released "prematurely" - and the party now "wants the law to take its course."

The media statement, dated 13 November 2023, asked for Dyani's immediate resignation after former EFF regional chairperson, Amandlagawethu Madaka, laid fraud charges against him.

The charges relate to Dyani's alleged misrepresentation of his salary when he asked the now-suspended City manager, Noxolo Nqwazi, for an increase in salary following his appointment as chief operations officer by the Nelson Mandela Bay Municipality in April this year.

In May, Nqwazi allegedly submitted a report to council to reconsider Dyani's remuneration package, and the salary was later increased.

Nqwazi, who also faces fraud charges, was suspended in an emergency council meeting last month.

Madaka laid the fraud charge against Dyani less than a month after he stepped in to replace Nqwazi in the interim.

According to an affidavit made by Madaka, Dyani provided pay slips from March and July 2022 as "proof" that the salary at his previous job with Pikitup Joburg was higher than the offer made by the municipality.

However, Madaka claims that Dyani committed fraud because he allegedly left Pikitup in August last year and was unemployed when accepting a job at the municipality.

Madaka subsequently opened a case of fraud against Dyani, which is now under investigation by the Hawks.

"It has now come to light that Dyani had not been in the employ of Pikitup since August 2022, as confirmed by the entity itself, meaning he misled the municipality on his employment status at the time of his appointment.

"This nefarious lie was the launching pad for his request for an increase in remuneration," the now retracted statement said.

In a letter sent by Dyani to Nqwazi, dated 4 April 2023, he indicated that the salary offer by the municipality was "placed on the minimum as per the advert for the position."

In the letter, Dyani also mentioned that his "current" salary was just above the midpoint of the salary range advertised for the position at the municipality.

"I therefore write this letter to request that the municipality please consider either matching my current salary or placing the salary offer at the midpoint as per the salary range that was advertised," the letter read.

According to Madaka, Dyani was supposed to earn just over R1.5-million a year. Currently, he apparently earns more than R2-million "due to his lies".

"Nqwazi dismally failed to conduct a proper due diligence before tabling the item to council and did not act in the best interest of the municipality," Madaka said.

Speaking to News24 on Wednesday, Pikitup spokesperson Muzi Mkhwanazi said Dyani was seconded by the City of Johannesburg to Pikitup as acting managing director for four months until 30 November 2019.

Thereafter, he was appointed as chief operations officer at Pikitup on 1 December 2019.

Mkhwanazi confirmed that Dyani's employment at Pikitup Joburg was terminated on 11 August 2022 after his resignation.

When approached for comment, Dyani said as the matter was now with the Hawks, and he was not at liberty to comment.

"The Hawks are investigating the matter, and the best is to let them go through with that particular inquiry."

He did, however, say that he would still attend Thursday's council meeting as acting City manager.

"As far as I know, there is no item or motion that has been brought, so I will be sitting in council as acting City manager,' Dyani said.

The mayor of Nelson Mandela Bay, Gary van Niekerk, said Madaka never brought the allegations to his attention.

"If brought to me, I will certainly investigate it. I am very worried about it if it is true - but, for now, there is nothing for me to act on," Van Niekerk said.