eThekwini Metro will initiate disciplinary processes following early morning raids by the Hawks on water and sanitation unit officials involving R700-million in alleged fraud.

"We have our internal investigations unit working with the Hawks in its execution. At the moment, we are waiting for a report from them so that we can again initiate internal processes with the suspected employees," acting city manager Sipho Cele said.

He was speaking after the Hawks on Tuesday raided the homes of several junior employees alleged to be living high-end lifestyles on the back of nefarious income streams.

Hawks spokesperson Brigadier Hangwani Mulaudzi confirmed that 18 "properties of interest were raided".

He said different sections under the Hawks attempted to recover about R700-million stolen from the water and sanitation unit through alleged tender fraud and corruption.

"The amount stolen in this matter has gone up from R200-million to R700-million."

Mulaudzi said reports that luxury vehicles were confiscated were false.

"That is not true. There were no vehicles that were seized."

He said authorities did not encounter any resistance during the raids.

"So far, we have not received any resistance or encountered any problems. I am not sure when we will finalise. We have made sure that every aspect [of the raids] that was required from us was covered."