The Amakhosi football manager was arrested by the Hawks on Wednesday, reportedly on charges of forgery and fraud in relation to his role in the construction of the Mbombela Stadium.
The details of the case against Motaung are yet to be made public, although a crowd is gathering outside court in Nelspruit as he is set to appear this morning.
City Press journalist Sizwe sama Yende tweeted: "People wearing ANC T-shirts are starting to protest. Dubula u Bobby (shoot Bobby) they chant" and "'Who killed Jimmy?' shouts a placard outside Bobby Motaung & co court".
The Jimmy referred to is Mbombela municipality speaker Jimmy Mohlala, who was shot dead in his Nelspruit house in 2009.
Mohlala had blown the whistle on Mbombela municipal manager Jacob Dladla, who was accused of manipulating 2010 construction contracts, and was also investigating a fraud case involving a company belonging to Motaung that was responsible for the construction of Mbombela Stadium.
A statement on Chiefs' website reads: "The Club has not received any formal confirmation of Bobby Motaung's arrest and therefore cannot comment on the matter at this time."