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Five people, accused of fraud and corruption, appeared in the East London Magistrate's Court on Thursday.
Hawks Captain Paul Ramaloko said two former Buffalo City municipal employees, Zonwabele Plata and Simphiwe Gwana were granted bail of R5 000 each.
Another former employee, Wendy Magekeze, was not given bail.
Ramaloko said 44-year-old Magekeze was serving a six-year-term in East London prison for fraud related to tenders. She was convicted and sentenced in January.
The three former Buffalo City municipal employees allegedly awarded a tender worth R28m to Casalinga Investment Trading for collecting waste in 2007 - without following proper procurement procedures.
Two directors of Casalinga Investment Trading, Lilian Naicker and Samukelisiwe Ndelu were granted bail of R20 000.
Ramaloko said they would be back in court on March 16.
