Funds being raised for the Western Cape ANC are not making it to the party's coffers, the Sunday Times reported.
African National Congress provincial treasurer Fezile Calana said at a general council meeting last weekend that the loss of funds would severely impact the cash-strapped branch.
"You [members] have been raising money on behalf of the ANC, taking cash, [but] it never comes to the party. This includes our leagues," he said during his financial report.
"This is a dangerous tendency that we consciously must stop, as it reflects [badly] on the organisation, whether it is done by an official or an ordinary member."
He said it was difficult to raise funds for the branch, as businesses in the Democratic Alliance led province were shunning the party.
"Normal fundraising has proven to be very difficult in the province because the business community does not see any value in being associated with the ANC or donating to the ANC."
The branch, which is reportedly in debt, also owes nearly R2-million to the Cape Town International Convention Centre for hosting its elective conference last February.
The sheriff of the court attached furniture in the provincial office last week as part of a order obtained by the convention centre.