Seven people, aged between 31 and 51, are due to appear in the Magistrate's Court in Gqeberha on Monday on charges of fraud, corruption and money laundering.
The Hawks in the Eastern Cape says an eighth person was not arrested yet, due to health considerations.
Spokesperson, Yolisa Mgolodela, says the arrests relate to the awarding of a tender in 2014 to what she said was an undeserving company.
She says it involved an amount of over R26 million rand.
Mgolodela says among those facing charges are five former Nelson Mandela Bay employees and three business people and their entities.