Top national police officer Lieutenant-General Bonang Mgwenya appeared in the Palm Ridge Magistrate's Court on Monday on charges of corruption, fraud, theft and money laundering.
This comes after her arrest during a pre-dawn raid at her house on Monday morning. She was granted R20 000 bail.
Her arrest is in connection with the supply of emergency warning equipment for the South African Police Service in 2017.
"The contract price and exposure to the police fiscus was R191 million. However, R65 million was paid to the service provider, Instrumentation for Traffic Law Enforcement (Pty) Ltd.
"The payment of R22 million was stopped at the advanced stage of the Investigating Directorate (ID)'s probe into the matter," ID national spokesperson Sindisiwe Twala said in a statement on Monday.
She is the 15th accused in the matter.
A number of other police officials have already been arrested, including former acting national police commissioner Khomotso Phahlane and former Gauteng police and deputy police commissioners.
Mgwenya is due back in court with her co-accused on 16 November.
*This story has been updated.