Hawks spokesperson Captain Anelisa Feni said the woman was arrested on Tuesday by the Mthatha Hawks' Serious Commercial Crime Unit in Gauteng where she is currently employed by the Department of Justice and Constitutional Development.
"The suspect was employed by the Bizana Local Municipality as a Senior Cashier from 2008 to 2011," Feni said.
"Her duties included receiving payments from the public for renewal of vehicle licences."
Feni said it was alleged that she used some of these payments for personal use.
"The total amount she allegedly defrauded from the municipality from 2008 to 2011 is approximately R2 million."