The Western Cape branch of the Congress of South African Trade Unions (Cosatu) on Tuesday said the contract worth R650,000 given to former Democratic Alliance (DA) leader Tony Leon's company by the City of Cape Town to communicate information on the drought afflicting the city was morally corrupt, even if it passed legal muster.

"Tony Leon and an ex employee of the City of Cape Town are being paid half a million rand to tell Capetonians that it is not raining," provincial Cosatu leader Tony Ehrenreich said in a statement.

"It seems that there are many instances where the DA members and friends are getting legal but morally corrupt contracts with the City, for millions of rands. Mayor De Lille’s sister should also be looked into as a beneficiary of this kind of legal contracts."

Ehrenreich added: "The ANC thieves stole outside the legal framework, but the DA thieves who learned under Apartheid steal within the legal framework. But it is no less of a corrupt action as it steals money that should have been used for the poor."

His remarks came after it was confirmed that Resolve Communications, headed by Leon and Nick Clelland, were given a contract in November to improve the city's communication regarding the worst drought in the Western Cape in more than a century.

The DA was led by Leon for seven years after its inception in 2000 and has governed the city and the province for the better part of a decade.

Its leadership of the city is in turmoil because of serious conduct allegations against Mayor Patricia de Lille and other top officials.