Some findings had already been made in the investigation, it said on Wednesday.
“It appears as if the municipality spends more than R100,000 per month on guest houses,” said AfriForum provincial co-ordinator Ruan Lottering in a statement.
AfriForum also alleged that proper procedures were not followed in the appointment of officials, who were unqualified.
Lottering said the investigation found that huge amounts of money had been spent on rental cars and lodging in luxury hotels and guest houses for officials.
“Some officials also received huge payments into their personal accounts,” he said.
“AfriForum is collecting the evidence and working on criminal cases against the alleged perpetrators.”
Municipality spokesman Sipho Mkwanazi could not be reached for comment.