Electronic equipment and documents were searched and seized at the offices of the George Municipality on Monday as part of an "ongoing operation" by the Hawks' serious commercial crimes unit
The investigation centres around allegations of fraud and corruption in procurement processes and the awarding of tenders, provincial Hawks spokesperson Captain Philani Nkwalase said.
"The ongoing operation is being carried out at various municipal offices, business premises and private homes of certain individuals of interest," he said.
No arrests have been made.
Municipal manager Trevor Botha said the operation followed "allegations made by individuals about irregular tender procurement and procedures".
"George Municipality is co-operating with the investigation," he said.