Democratic Alliance MP Jacques Smalle said he laid the charges against the municipality's former manager, chief financial officer and its technical director on Friday.
The municipality could not be reached for comment.
Smalle said the officials allegedly approved a payment of R2.5 million last year to a former employee of Star Mill Developers -- the company contracted to construct roads and storm water infrastructure in Modjadjiskloof.
"This payment was effected without proper checks, apparently when this employee had merely made a claim to the municipality that the tender was theirs," he said in a statement.
"The main contractor had failed to carry out its responsibilities under the tender agreement. Rather than these municipal officials demanding full performance by the contractor or the return of money already paid, they went ahead to approve payments to this disgruntled employee."
Smalle said the officials had allegedly contravened the Municipal Finance Management Act.
"The police must now probe how a person who never had any contractual tender agreement with the municipality ended up being paid millions of rands," he said.
"The fact that this transaction was approved by these officials when they still held these positions does not erase their previous wrong-doings and they should still be held accountable now.
"This will serve as a deterrent for future officials who might want to do the same."
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