South African National Civic Organisation (Sanco) president Richard Mdakane and general secretary Skhumbuzo Mpanza appeared in the Durban Magistrate's Court on Monday charged with defrauding the organisation out of R1.1m.
The two were charged over the alleged issuing of false invoices over a four-year period between 2014 and 2018.
There was no opposition to bail.
It was placed on record that neither Mdakane, 61, nor Mpanza, 54, had previous convictions or pending cases.
They were granted bail of R15 000 each and ordered to hand over their laptops to the investigating officer by Monday afternoon.
They will appear in court again at the end of March.
Sunday World newspaper reported that police had attempted to arrest the duo at the organisation's national working committee meeting in Alexandra, Johannesburg, over the weekend but they resisted.
Following this, a police spokesperson asked that they hand themselves over because there was a warrant for their arrest.
The newspaper reported that the charges were related to alleged misuse of the organisation's skills development fund.
Mdakane was quoted as saying that the charges were meant to disrupt Sanco's national conference which, he said, would go ahead anyway.