In an about-turn, DA provincial chairperson Kent Morkel now admits receiving a R10 000 payment from micro-finance company Gems, but it was a consultancy fee, not a bribe.
On Wednesday, he said: "I believe I'm totally innocent. No charge was laid against me. I don't know how I was implicated in this case."
This was after the Cape High Court accepted a Gems plea bargain, which included an admission that they had bribed Morkel.
A councillor and DA caucus leader in the Cape Town Council, Morkel on Thursday further claimed to have acted at the behest of the SA Municipal Workers Union (Samwu), a key affiliate of the Congress of SA Trade Unions (Cosatu), an alliance partner of the ANC.
The party on Thursday denounced Morkel's actions as "unacceptable and disgraceful", and called on DA leader Tony Leon to stop "trying to create the impression that they are the moral leaders of society and the country".
Morkel said he received the money for "facilitating" a meeting between Samwu, Gems and a representative from Eden district municipality.
On Wednesday, Gems admitted in a plea bargain accepted by the Cape High Court that it bribed Morkel to secure stop orders in favour of the company from municipal employees' salaries in return for R10 000.
Gems was fined R5-million and has to compensate municipal workers who took loans from it. Their claims could total R60-million.
Besides implicating Morkel, the Gems plea bargain also fingered 33 Samwu officials, since dismissed from the union for accepting bribes.
In the plea bargain agreement, Gems admitted to approaching Morkel to use his power and influence to promote the services of the company through his co-councillors and politicians.
But Morkel said he did not promote Gems or help them obtain new business in the city.
"At the request of Samwu Western Cape, I merely facilitated current applications to Gems - as the existing service provider to the Cape Town municipality at the time, and (I believed) the Eden district municipality - be processed administratively."
He said he was not paid for this.
"However, when Samwu requested a few months later that I facilitate a similar process in the Eden district municipality, I said the municipality was not my responsibility, that my work load did not allow it and that I would only do it during the December recess when it would not interfere with my responsibilities and if I was paid for my services, time and skills.
"They agreed, and I therefore set up and facilitated a meeting between Samwu Western Cape, Gems and a representative from the Eden municipality in George in December 2001.
"I was paid R10 000 by Gems the day after the meeting for my services without knowing whether or not this process would be concluded successfully. I immediately signed a receipt for the money.
"The Scorpions interviewed me approximately 18 months ago on the matter, and I offered to co-operate with them whenever it was required. I have great admiration for the work they do and remain available to assist them at any time."
ANC chairman in the council, Saleem Mowzer said: "As a public figure, it is unacceptable for Morkel to use his position to set up meetings with municipalities.
"At the last council meeting, he boasted he would be the next mayor, but he is not fit for the leadership of any party. With the Gerald Morkel and the Harksen case, there is now a trend within the DA leadership.
"Tony Leon and the DA are quick to attack others and call on other party members to step down, yet when it comes to their own members, they are hypocritical and apply the rules of innocent until proven guilty.
The DA's position is that Morkel would be suspended if arrested and expelled if convicted.