Former Bosasa chief operations officer Angelo Agrizzi told the judicial commission of inquiry into allegations of state capture that members of the ANC in the North West had in the past laundered money through the facility's youth centres and allegedly used it for regional elections.
Agrizzi revealed this on Friday during his third day of testimony.
He said the Department of Social Development in the province had paid Bosasa for software programmes already in place at youth development centres.
Agrizzi told inquiry chairperson Deputy Chief Justice Raymond Zondo that the money was requested for running elections.
He added that part of the money would be paid to the official that had requested money for the elections.
Agrizzi told the commission that Syvion Dlamini of Bosasa had previously requested that he attend a meeting at a stadium in Rustenburg.
"The MEC, [I] cannot recall the name, was present. The MEC was a lady responsible for social development in the North West," he said.
He said usually, the youth centre management would come to him and tell him that a certain individual had approached them.
"Let's understand the scheme, to describe the process of the cash generation. A youth development centre being run and facilitated by Bosasa; they say to Bosasa, 'we need a software programme'?" advocate Paul Pretorius asked.
Agrizzi said the social development department would pay Bosasa for the "software".
Pretorius asked if the money was paid to Bosasa, and if part of the money was retained by Bosasa, and the rest was paid to the individual who requested it - and if that was used for elections.
Agrizzi said that was the "excuse" given to him.
Asked for comment, ANC acting national spokesperson Dakota Legwete said: "We will get a chance to go over the submissions and we will respond in due course."