He is appealing against the conviction and sentence in the Eastern Cape High Court in Makhanda (Grahamstown).
Until that process is completed‚ Lungisa has been asked to step down as a senior leader representing the party as a mayoral committee member in charge of the infrastructure and engineering department.
He will remain an ordinary councillor.
The ANC’s provincial working committee was in the Bay on Monday to assess the regional structure and also to instruct it to implement what it said was a decision by the national bosses that Lungisa must step down as mayoral committee member.
But Lungisa was adamant last night that there was no such decision.