Two suspects have been arrested in Limpopo in connection with an alleged corruption and fraud scheme involving more than R800,000 at the Small Enterprise Development and Finance Agency (Sedfa).

The Directorate for Priority Crime Investigation, commonly known as the Hawks, confirmed the arrests on Wednesday following a lengthy probe into alleged financial misconduct at Sedfa’s Tzaneen offices.

The suspects, a 58-year-old company director and her company, along with a 49-year-old financial advisor, were apprehended on 17 March 2026 by the Hawks’ Serious Corruption Investigation unit based in Phalaborwa.

According to investigators, the case stems from information received about alleged criminal activities at Sedfa, including fraud, corruption, theft and money laundering. This prompted authorities to secure and execute a search-and-seizure warrant at the agency’s offices on 24 April 2025.

During the operation, investigators confiscated electronic devices and documents for forensic analysis, which ultimately uncovered what authorities describe as a kickback scheme involving public funds.

The Hawks allege that a Sedfa official colluded with company directors, assisting them with funding applications in exchange for financial rewards. These kickbacks are believed to total more than R800,000, paid by companies that successfully secured funding through the agency.

The arrests mark a significant breakthrough in the investigation, with the two suspects expected to appear in the Tzaneen Magistrate’s Court on 19 March 2026. They face multiple charges, including fraud, corruption, theft and money laundering.

Hawks spokesperson Colonel Katlego Mogale said the arrests demonstrate the unit’s commitment to tackling corruption involving public funds.

“The Serious Corruption Investigation unit continues to act decisively on information received and will not hesitate to pursue those involved in looting state resources,” Mogale said.

Limpopo Hawks head Major General Gopz Govender issued a stern warning to individuals entrusted with public finances.

“Those who are entrusted with public funds but choose to abuse them must know that the Serious Corruption Investigation will ensure they are brought to book,” Govender said.

He added that the investigation is ongoing and further arrests have not been ruled out, suggesting that more individuals, including officials and beneficiaries, could be implicated as the probe deepens.

The case adds to growing concerns over corruption within state-linked funding institutions, which are meant to support small businesses and drive economic development but have increasingly come under scrutiny for alleged mismanagement and abuse of funds.