A senior manager in the Mnquma Municipality in Butterworth was arrested on Tuesday by the Hawks on charges of fraud and corruption.
Hawks spokesperson, Brigadier Hangwani Mulaudzi, said the suspect was due to appear in court on Wednesday for bail.
"It follows the announcement that we made that there is a task team that will be formulated to deal with corruption and fraud issues in most of the municipalities in the Eastern Cape. This is one of those high profile cases that we have managed to crack," said Mulaudzi.
He added that there are other cases that they are still looking into.
The name of the manager could not be made known until he appeared in court.