Former National Youth Development Agency head Andile Lungisa and three others accused of defrauding the arts and culture department arrived at a Johannesburg court just before noon on Friday.
The four sat in the dock of the Specialised Commercial Crime Court waiting for their case to be heard.
They were arrested earlier on Friday after handing themselves over to police unit the Hawks.
Three of those arrested – two men and a woman – hid their faces from the media while Lungisa was chatting and smiling.
Hawks spokesman Paul Ramaloko said the arrests related to R2.5 million paid by the department for the Nelson Mandela Sports Day concert.
The four allegedly lied to the department and promised that they would have R Kelly perform.
At the time of the concert, the department said it had entered into negotiations with the promoter of the R&B singer's recent tour to South Africa.
It was subsequently announced that the star was on the bill for the music concert that would follow the day's sporting events.
However, it was discovered that R Kelly's management had been unaware of the agreement, and he had departed the country as planned.
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