National Youth Development Agency (NYDA) chief executive Steven Ngubeni has been dismissed with immediate effect, the agency said on Wednesday.
"Based on the information and documentation at its disposal, the board was of the view that there is enough evidence to demonstrate that Mr Ngubeni was guilty of financial misconduct in relation to the seven charges tabled before him at an independent disciplinary enquiry," NYDA spokesperson Siyabonga Magadla said in a statement.
Ayanda Makaula would be the acting chief executive until the appointment of a permanent chief executive.
The youth agency suspended Ngubeni in July but no reasons were given for the suspension.
On Friday, former NYDA head Andile Lungisa and three other people were arrested for allegedly defrauding the arts and culture department for the Nelson Mandela Sports Day.
"It relates to R2.5-million paid by the department of arts and culture for the Nelson Mandela Sports Day concert," Hawks spokesperson Paul Ramaloko said at the time.
Lungisa and the three other people were alleged to have shared the money among themselves.
Ramaloko said Lungisa handed himself over and was subsequently arrested.
The four allegedly lied to the department and promised that they would have R Kelly perform.
At the time of the concert, the department said it had entered into negotiations with the promoter of the R&B singer's recent tour to South Africa.
It was subsequently announced that the star was on the bill for the music concert that would follow the day's sporting events.
However, it was discovered that R Kelly's management was unaware of the agreement, and he departed the country as planned.
Meanwhile, the arts and culture department said on August 15 that it would be returned the funds paid for R Kelly to perform.
"We will get our money back," arts and culture department spokesperson Mack Lewele said.