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Port Elizabeth - A director at Alfred Nzo local municipality has been arrested for allegedly defrauding his employer of R12.5 million, the Hawks said on Friday.

“He allegedly facilitated the awarding of a tender to install electricity in surrounding villages to a certain company... the winning company, in turn, appointed the director's own company as a sub-contractor for the project,” spokesman Captain Paul Ramaloko said.

No electricity has been installed in the villages in and around the municipality, situated in Mbizana in the Eastern Cape, said Ramaloko.

The man arrested is the director of planning infrastructure development in the municipality.

The main contractor allegedly channelled over R12 million into the director's company bank account.

“A six-month investigation has led to his arrest; more are expected to be arrested soon,” said Ramaloko.

The director is expected to appear in the Mbizana Magistrate's Court on Monday to face charges of fraud and corruption. - Sapa