The Hawks in Limpopo arrested the 47-year-old last week.
Spokesperson Captain Matimba Maluleke says her arrest follows a complaint of fraud from Mtititi community, outside Malamulele.
Residents accused the suspect of having claimed R3.2 million COVID-19 social relief funds from the Unemployment Insurance Fund (UIF) on behalf of her 242 former Malamulele based Extended Public Works Programme (EPWP) workers.
However, the workers were allegedly never paid.
The crime was allegedly committed between April and August 2020.
Hawks says investigations revealed that the workers’ contracts were terminated before the President declared a COVID-19 lockdown.
The funds from which the suspect is accused of having claimed from are meant for workers who had been affected by the lockdown.
The suspect has been remanded in custody.
She will return to court next week Monday for a formal bail application. – Report by Tshepo Maeko from Radio Turf