The Hawks arrested eight officials and a business man from the Alfred Nzo District Municipality in the Eastern Cape on Thursday morning.
This follows investigations into allegations of fraud and money laundering amounting to R300-million and contravention of the Municipal Finance Management Act.
The officials are currently in the process of being charged at the Mount Ayliff police station.
They are expected to appear in court later on Thursday.
Eastern Cape Hawks spokesperson Anelisa Feni says some of them are managers at the municipality while others are former managers.
It is alleged that in October 2014, officials from the Bid Evaluation Committee and the Bid Adjudication Committee flouted the procurement processes of the municipality by irregularly awarding nine contracts to eight companies.
Feni says more arrests are imminent.
