Mamabolo, the former chairperson of the Limpopo geographical names committee, was arrested by the Hawks on Wednesday evening in Polokwane, Limpopo.
He is facing 20 counts of fraud and a conspiracy to commit fraud, according to officials who have seen the warrant.
"A warrant of arrest was issued this morning. The police have been looking for him the whole day and he was arrested this evening after a large-scale manhunt," said an official from the Hawks.
Last year the ANC Youth League distributed a secret document to the media alleging that Mamabolo could not account for the committee's money. The document claimed that Mamabolo was appointed as chairperson of the organisation in February 2010.
It further stated that in June 2010, R400 000 was transferred by the province's department of sport, arts and culture to a bank account of the organisation.
Controversial character
"The department further transferred another sum of R400 000 into the organisation's bank account in September the following day. Exactly 26 days later, the committee was again broke and left with only R25 000.
"Ironically on November 11 2011, Mamabolo allegedly briefed the board that he wanted to resign," according to the document.
The controversial Mamabolo was in the news two weeks ago after former ANC Youth League leader Julius Malema laid crimen injuria charges against him. This was after Mamabolo allegedly threatened to exhume the remains of Malema's mother – Mahlodi Malema – from her grave and throw them in front of his grandmother's house in Seshego, outside Polokwane.
The crimen injuria charges were later dropped by the Polokwane Magistrate's Court.
Mamabolo is also well-known for leading a violent anti-Malema march outside Malema's grandmother's house when the ANC's national disciplinary committee announced his expulsion from the party.