Senior Cape Town municipal officials and the mayor have brushed off the PPA security firm's claims that it was working for the city's authorities when patrolling the beach and banishing people at Clifton, an up-market coastal suburb, News24 reported.

A new racial scandal has erupted in South Africa after a private security company's guards allegedly ordered black people to leave a fashionable Cape Town beach over the Christmas holiday, the outlet reported.

The company "had no authority to ask anyone to leave Clifton beach", Mayor Dan Plato said, but he added that "they asked people of all races to leave, and did not single out any race groups".

However, local activist Chumani Maxwele reportedly stated that the guards had targeted black people on the beach, which attracts huge crowds over the holiday season.

"These private security guards are hired by the Clifton (residents), they are actually briefed to not allow black people who appear to look like they are from the townships or criminals onto the beach", he told the News 24 website.

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The situation has sparked a major scandal, with local activists starting a demonstration called "Reclaim the beach", according to social media users.

Protesters have reportedly gathered on the beach, holding banners and dancing.

PPA CEO Alwyn Landman has commented on the situation, saying that the company's guards did not close the beach, but acted to protect local residents after alleged criminal activity had caused "mayhem".