Hawks spokesperson Captain Philani Nkwalase said on Wednesday that the men will be charged with fraud and contravention of section 173 of the Municipal Finance Management Act 56 of 2003 (MFMA).
"The 39-year-old former senior employee at the municipality was arrested on Tuesday. Another senior officer, 64, working at Gasegonyane municipality was arrested last week. They were both arrested through (J175) court summons."
Nkwalase said the investigation revealed some irregularities that dated back to September 2012 during the process of selecting a service provider for the municipality.
"It is alleged that the company that won a tender bid, submitted invalid documents.
The company was contracted for three years and received a total of R 9 800 000.00 paid out in monthly instalments for the service rendered."
The suspects are expected to appear in the Kuruman Magistrates' court on July 5.