Nelson Mandela Bay Acting Mayor, Thsonono Buyeye has appointed Anele Qaba to act as the new City Manager following the arrest of Mvuleni Mapu on Friday.
Buyeye says he has become aware of the arrest of the acting City Manager but has no knowledge about the allegations levelled against him.
He says he has instructed that an internal investigation take place in order to establish the background to the allegations.
Mapu, and local businesswoman Bulelwa Ntanga, were granted bail of R20 000 each when they appeared in the PE Magistrate's Court on Friday.
The National Prosecuting Authority says the two appeared on allegations of fraud and corruption which involved about R14-million.
It is alleged that Mapu and Ntanga had a corrupt relationship during 2014 and that Mapu allegedly accepted a R900 000 bribe from Ntanga in exchange for awarding her business with a R12.8-million tender.
Mapu was the Director of the municipality's housing department at the time while Ntanga was the sole owner of Jeke and Qadi Trading cc
The matter was postponed to the 3rd of November.