African National Congress (ANC) treasurer-general Mathews Phosa is claiming R1-million damages and insisting on a public apology after a fellow party member accused him of "funding and fuelling" service delivery protests in Mpumalanga.

"It's not about the money, Mr Makamo can't, when on radio, say what he wants to especially when it's not true... and the person is of Mr Phosa's stature," said Phosa's attorney from BDK Attorneys, Ian Small Smith, on Wednesday.

The allegations were made by Raymond Makamo, the Mpumalanga secretary of the South African National Civics Organisation - an ANC ally - in an interview with the Ligwalagwala radio station on Monday and Tuesday. Makamo is also a member of the ANC.

Smith said that a letter of demand was sent to Makamo, claiming the money and a public apology from him. Makamo has seven days to comply.

Should he fail to do so, Smith said that court proceedings would be instituted against him.

Phosa declined to comment on Wednesday.

"I don't want to talk because we might give evidence in court," he said.

The allegations have infuriated the ANC, with its spokesperson Jackson Mthembu condemning them as "spurious".

"We are even more shocked and infuriated by allegations from the same person to the effect that a national executive committee (NEC) member again in the name of our treasurer-general has paid journalists, particularly Mzilikazi Wa Africa, to write negative stories about Mpumalanga province and the ANC Premier there, Cde DD [David] Mabuza," he said in a statement.

"These allegations by Makamo are without any basis and in our view are meant to tarnish the good name and image of our treasurer-general."

Mthembu said that if Makamo believed in the allegations, he should have approached the ANC on the matter.

His failure to substantiate the allegations and his failure to alert party leadership were "an attempt to bring the ANC and its leadership into disrepute".

"The ANC will then deal with this matter in a manner consistent with its constitution."

Service delivery protests have flared sporadically in the province, intensifying last year. The latest, in the Siyathemba township over recet days, turned violent with a library burnt down and police firing rubber bullets to disperse crowds.