Johannesburg Mayor Herman Mashaba said on Monday he had fired Rabelani Dagada as member of mayoral committee for finance after a forensic investigation found him in breach of the City's code of conduct and conflict of interest.

Mashaba said he had taken the decision in consultation with the Federal Executive of his Democratic Alliance (DA) party.

"Councillor Dagada has also been suspended by the Federal Executive as a councillor, pending an enquiry of the DA's Federal Legal Commission," he said in a statement.

In October, Dagada was implicated in a "jobs for pals" scandal in which he was alleged to have enriched his friend by facilitating access to lucrative tenders.

According to reports, Seth Mukwevho received a two-month contract of over R190 000, allegedly due to his long-standing relationship with Dagada.

Mashaba then instituted a forensic investigation through an external company which concluded its investigation into Dagada last Friday.

"The forensic investigation has found that Dagada has breached the City’s Code of Conduct by not declaring his interests and, subsequently, conflicts of interest with individuals closely associated with him," Mashaba said.

"Further to this, the forensic investigation has found Dagada to have been involved in price fixing with a service provider to the City, and in the process acted against his sworn duty to our residents."

Mashaba said he had moved MMC Funzela Ngobeni from the development planning department to replace Dagada in finance with immediate effect and appointed Reuben Masango to fill Ngobeni's former post.

Masango, an attorney by profession, is a DA councillor in Soweto.