It is alleged Gumede demanded backhander payments from a group of contractors that shared work on a R650million construction project.
The city advertised and awarded an all-inclusive contract to build much-needed ablution facilities at schools and informal settlements in greater Durban in 2015.
Eight companies were each to be given a share of the contract.
However, four extra companies were given some of the work, even though they did not bid.
When the city pumped in a further R127m after the contract ran out of funds last year, all 12 companies received payments.
One of the contractors awarded work on the project, Calvin Mathibeli, claimed he had paid a large sum to Gumede to benefit the ANC and her own foundation, to remain contracted.
Gumede denied the allegation and said she was not involved with tender procurement.
“The mayor invited me to her house and asked me to give her R100000 because the ANC needed funds, which I did. She also got me to pay for ANC regalia and the branding of vehicles.”
Mathibeli said work was done on the ANC cars at his business premises in uMhlanga.
However, when the mayor asked him to make a R150000 contribution to the Zandile Gumede Foundation, he declined.
A well-placed municipal source, who asked not to be named, said a tender with the same specifications was duplicated and advertised last year but was yet to be awarded.
The city’s integrity investigative unit is investigating the allegations.
Tender WS6766 was originally advertised by the water and sanitation department for a three-phase roll-out of ablution facilities.
Eight companies were required to do the work and each was to be paid more than R19.8m a year over the three years, from 2015 to this year.
Four more firms were added after consultation with the bid adjudication committee, including one the city previously blacklisted.
The blacklisted company continues to receive payments.
The Sunday Tribune has since established that only three schools - Saphumelela Primary School, Hlengisizwe Primary and Collingwood Primary - had benefited from the project.
Saphumelela has two haphazardly built toilet blocks, earmarked for staff. The toilets at Hlengisizwe were not in use because there was no water connection, and three mobile toilets were built on the Collingwood site.
eThekwini municipality spokesperson Mandla Nsele confirmed the allegations were being investigated.
He said the R650m plus R127m were for the entire community ablution blocks programme and the Department of Education had partnered with the city to provide toilets at schools.
“The municipality merely uses the services of contract WS6766 to undertake school work, by agreement with the department. This is separately funded by the DOE and managed separately,” said Nsele.
Gumede denied requesting money from a contractor. She said she was not aware of a tender worth R650m.
“I’ve never heard of any of the companies involved in this tender. The ANC campaigns and branding are all done at the regional offices. The secretary is responsible for the logistics.”