Western Cape police made the arrests on Thursday, 23rd November as part of an investigation into tender fraud within the city.
The accused, including two government officials, are suspected of inflating invoices, paying service providers for construction work not undertaken and other “illicit activities”, according to South Africa’s News24 network.
The city authorities said they are taking disciplinary action against the two employees who have been implicated. The police are investigating suspected bribes paid by a subcontractor in connection with repair and maintenance projects.
"Besides the forensic investigation, the city's internal audit also independently identified various control gaps in the management of the underlying contract, initially awarded in 2017-18," the city authority said in a statement.
It added: "The city has since created its own Engineering Services Unit, staffed with professionals who monitor all construction and maintenance work… To address the historical gaps, multi-level controls have since been built with strong oversight by management."
The authority added that maintenance and improvements valued at around R2 billion (£97 million) had been carried out at more than 40,000 affordable rental units. Around 160,000 people live in affordable rental units operated by the city.
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