The Chilli Boys recently announced that they had signed Morrison from Pirates ahead of the 2018/19 Premier Soccer League (PSL) season.
However, Morrison refuted the club statements and labelled the announcement as 'fake news', which he commented on his official Instagram page on Tuesday.
Mpengesi is now demanding that the 25-year-old forward return an amount of R24 000 allegedly paid to him by the Chilli Boys.
“Orlando Pirates duo Bernard Morrison and Thabo Matlaba will no longer be joining Chippa United as previously indicated. The clubs had reached an agreement that Morrison and Matlaba were to join Chippa United on loan, hence the announcement was made by the club,” Chippa United said on their official Twitter page Thursday.
“Following the negative reports in the media regarding the move of Matlaba and Morrison, it was decided by all parties involved that the loan agreements be terminated. Everything was in place for Morrison’s move, and we gave him a relocation allowance of R24 000 at his request. But once he’d been granted his clearance, it seemed he had a change of heart, explained executive chairman Chippa Mpengesi," another statement read.
"Morrison has since been released from his contract at Orlando Pirates, with Matlaba opting to stay with the Sea Robbers and fight for his position in the team," the club boss added.
“I am disappointed by the statements by Morrison to the public, referring to our announcement as ‘fake news’. I have been unable to reach him and his agent lately. All I want is for him to return my money," Mpengesi concluded.
Pirates also confirmed that Morrison, who joined the club from Democratic Republic of Congo (DRC) giants AS Vita Club in 2016, is owing Chippa some money on their official website.
A club statement read; "Orlando Pirates Football Club would like to confirm that there was a discussion in place for the transfer of players – Thamsanqa Sangweni, Bernard Morrison and Thabo Matlaba to Chippa United."
"Subsequent to these discussions, the deal involving Thabo Matlaba was no longer on the table however, with regards to Morrison, the club can confirm that some monies were paid by Mr Mpengesi to Morrison towards the player’s relocation to Port Elizabeth," another statement read on Thursday.
Meanwhile, Pirates have officially announced the departure of Senegal international Issa Sarr, who struggled for game time under Serbian coach Milutin 'Micho' Sredojevic last season.
"Following four wonderful seasons, midfielder Issa Sarr has left Orlando Pirates Football Club. Words cannot express the gratitude and appreciation of Sarr during his stay at the Club. This is a player who – at all times – displayed high levels of professionalism and discipline. The club will remain forever grateful for his contribution and wish him nothing but the very best in his future endeavours," a statement read.
The 31-year-old central midfielder joined the Buccaneers from Platinum Stars in 2014 and he helped the Soweto giants reach the 2015 Caf Confederation Cup final.