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Thirty eight residents of Sterkspruit in the north Eastern Cape appeared in court on Wednesday on charges of public violence.
Their court appearance was a sequel to a series of protests by residents that have brought the town to a standstill.
Residents, under the banner of the Sterkspruit Civic Association, say they no longer want to be part of the Senqu municipality, accusing it of being riddled with fraud and corruption.
Police are maintaining a strong presence in the town.
Provincial police spokesperson, brigadier Marinda Mills, says the residents were released on warning, but with strict conditions.
"They may not take part in any acts of public violence and they may not interfere with witnesses or the investigating of these cases. The case has been remanded until the 8th of March" Mills said.
Another 32 suspects were arrested on Tuesday evening and they will appear in court on Thursday.