MTHATHA – Six Kumkani Mhlontlo Local Municipality officials were suspended following their arrest on 22 September in connection with an alleged fraud and money-laundering scheme involving more than R2.8 million.
They appeared briefly before the Qumbu Magistrate’s Court facing charges of fraud and money laundering, and were each released on R15,000 bail.
The matter was postponed to 9 November for disclosure of the docket at Mthatha Specialised Commercial Court.
The accused are Municipal Manager Lungile Ndabeni (52), Integrated Development Plan (IDP) Coordinator Thandokazi Njobe (40), Administration Clerk Sanelisiwe Gcule (31), Assistant Manager for Payroll Mkhululi Nkonzombini (48), Payroll Officer Bongezwa Hlosi (41) and Secretary Nothembi Gegula (40).
Hawks detail alleged payroll scheme
Hawks spokesperson, Warrant Officer Ndiphiwe Mhlakuvana, said the arrests were carried out by the Mthatha Hawks’ Serious Commercial Crime Investigation (SCCI) team during a coordinated operation in Mthatha, Qumbu, Cofimvaba and Tsolo.
“According to reports, the investigation centres on alleged financial misconduct and the manipulation of municipal administrative and payroll processes between 2022 and 2025. They allegedly acted together in creating fictitious junior positions within the Municipality,” said Mhlakuvana.
He added that payments were then reportedly processed through the municipal payroll system and transferred into various bank accounts.
The Mthatha Hawks launched an investigation that confirmed the allegations, the creation of fictitious positions and the processing of fraudulent payroll payments.
Arrests follow commercial crime investigation
“The transactions allegedly resulted in an unlawful financial benefit to individuals connected to the scheme, with the cumulative prejudice to the Municipality exceeding R2.8 million. Further investigation led to the securing of warrants of arrest. The arrests were executed at various locations in Mthatha, Qumbu, Cofimvaba and Tsolo,” said Mhlakuvana.
Hawks Provincial Head, Major-General Mboiki Obed Ngwenya, commended the investigation team, saying the investigation was conducted without fear, favour or prejudice.
Kumkani Mhlontlo Local Municipality spokesperson, Mamela Mangcotywa, confirmed that all the accused had been suspended by the municipality.
She said the municipality notes the arrests and will continue to cooperate fully with the relevant law-enforcement authorities and provide any assistance or information required within the applicable legal framework.
Criminal and internal processes
“At this stage, the Municipality will limit its comments to verified information and will not comment on matters relating to the charges, evidence or identities of persons arrested, where such information has not been officially confirmed or where disclosure may prejudice ongoing legal proceedings. Enquiries relating to the criminal investigation should be directed to the relevant law-enforcement authority.
“The Municipality further wishes to clarify that the criminal investigation by law-enforcement authorities and any internal municipal processes are separate matters. Where applicable, internal administrative, disciplinary or consequence-management processes will be dealt with independently and in accordance with relevant legislation, municipal policies and procedures,” said Mangcotywa.
She added that the municipality remains committed to protecting public resources, upholding good governance, promoting accountability and cooperating with all lawful processes aimed at ensuring that municipal affairs are conducted responsibly and in accordance with the law.
“We respect the principle of due process and emphasise that an arrest does not constitute a finding of guilt. Any person arrested remains presumed innocent until proven guilty by a competent court. As the matter remains subject to ongoing legal processes, the Municipality will provide further information through its official communication channels when such information is verified and when disclosure is legally permissible,” said Mangcotywa.
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