The Daily Dispatch newspaper reported how politically-connected “tenderpreneurs” cashed in on the Nelson Mandela’s chaotic memorial service in December last year.
Factions in the ANC in the Eastern Cape had T-shirts made with public money.
The newspaper said it broke the story a few weeks after Mandela’s funeral.
Buffalo City municipality Mayor Zukiswa Ncitha and two others were arrested on Monday for alleged fraud involving Nelson Mandela’s memorial service, Eastern Cape officials said.
Hawks spokesperson Paul Ramaloko confirmed on Monday that Ncitha, her deputy Temba Tinta and speaker Luleka Simon-Ndzele had been arrested and would appear in the East London Magistrate’s Court on the same day.