The Hawks raided the eThekwini Municipality on Thursday after R200 million was allegedly paid for “fictitious work”.
Hawks spokesperson Brigadier Hangwani Mulaudzi said the agency’s National Clean Audit Task Team had conducted a search-and-seizure operation following “allegations of the awarding of tenders by the municipality without following due processes”.
“The monetary value involved is approximately R200 million,” he added.
“Since 2016 to date, various companies and other service providers allegedly colluded with municipal officials and were paid millions of rand for fictitious work.
“It is alleged municipal officials endorsed certain companies and also registered fictitious businesses in order for them to be awarded lucrative tenders, thus benefiting from unlawful and fraudulent payments.
“Most of the companies were not even registered on the municipality’s database,” Mulaudzi said.
“The operation was successful and has led to the seizure of a number of documents and electronic equipment which will assist in the ongoing probe.”
He added no arrests have been made yet, saying investigations were at an advanced stage.
Cases of fraud, corruption and money-laundering are being investigated.
The Daily News reported three private homes belonging to various municipal officials were raided, saying the investigations involved the Water and Sanitation Department.