The Hawks arrested a senior Nelson Mandela Bay metro official and a businesswoman for fraud in early morning operations on Friday.

Hawks spokesperson Lwando Zenzile said the official allegedly accepted a bribe of R900 000 from the contractor in exchange for a housing tender.

The alleged collusion happened between December 2014 and March 2015, Zenzile said.

"We arrested the municipal official at 04:45 at his home and proceeded to the businesswoman's house and arrested her at 05:30. They are due to appear at the Port Elizabeth Special Commercial Crimes Court this morning," Zenzile said.

This is a developing story. More information to follow.

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