Four top officials from the Alfred Ndzo District Municipality and a businessman have appeared in court in Mthatha on charges of fraud and contravening the Municipal Finance Management Act.
They were taken into custody on Thursday morning by the Hawks' Serious Corruption Investigation Team.
In 2012, a certain company was allegedly awarded a R38 million tender for the installation of water meter readers at Alfred Ndzo District Municipality which was already installed.
The said company is further alleged to have subcontracted another company which is reported to have taken over the tender and received the proceeds.
The investigations further revealed that the subcontracted company was already paying considerable amounts to the bidding committee during the bidding process.
The accused are the former CFO of the Alfred Ndzo Municipality Luyolo Fokazi (49); former Acting Municipal Manager Xolani Masiza (53); former supply chain management assistant manager Zuko Mani (44); former supply chain manager Paul Mahlasela (47) and Director of Chumani solutions, Xola Bomela.
They were all released on bail of R10 000 and the case was postponed to the 9th of May for further investigation.
