The revered musician, also an ANC ward councillor in Giyani, has accused ANC provincial secretary Nocks Seabi and his deputy Makoma Makhurupetje of manipulating the candidates' list in his area.
The feared and outspoken politician said the two musketeers deliberately circumvented the list to spite the Giyani region because it had rejected their call to sabotage President Jacob Zuma's Freedom Day rally at Giyani Stadium.
Speaking to Sunday World on Friday, the angry politician claimed Makhurupetje and Seabi had removed the names of several candidates from the list and replaced them with their cronies.
"There are many people who have been removed from the list by Nocks and Makoma and replaced with their own people," Penny Penny said.
"In my area the list that we sent to the national office didn't include John Bilankulu, but surprisingly he is there on the final list. He was smuggled into the list by those two."
Penny Penny said he had decided to speak out after his attempt to ask ANC secretary-general Gwede Mantashe to resolve the matter internally hit a brick wall.
"He asked if I had lodged a complaint. And when I told him I was not in a position to do so because I was not the secretary of the ANC in the region, he said I should wait until after the local government elections," Penny Penny said.
"How can I wait when people are killing the ANC? I'm speaking out because I must rise and defend this movement. This has nothing to do with ill-discipline.
"It's a principle matter. Whoever wants to fire me can do so. I'm an artist. I can still make a living through music."
The muso claimed the duo had tempered with the list to spite them because their Giyani subregion had mobilised people to attend the May Day rally.
"They wanted people not to attend and the rally to flop so an impression could be created that Zuma was not liked in this province," he said.
"But we like Zuma. That is why we mobilised many people to go there."
Penny Penny also threw some spicy shade at Makhurupetje, also MEC for corporative governance, human settlement and traditional affairs, accusing her of being corrupt.
"The Giyani municipality has not had a municipal manager for at least two years now," he said.
"She appointed an acting municipal manager but doesn't want to appoint a full-time one because she uses him to loot resource. She is corrupt."
Attempts to solicit comment from ANC provincial spokesman Khumbudzo Ntshavheni drew a blank.