Siphelele Nketo
SIX employees in the Kumkani Mhlontlo Local Municipality were arrested this week in connection with an alleged fraud and money laundering scheme involving more than R2.8 million. They were arrested on Tuesday, September 22, by the Mthatha Hawks’ Serious Commercial Crime Investigation (SCCI) team during coordinated operations in Mthatha, Qumbu, Cofimvaba and Tsolo.
Among them were the municipal manager (52), Integrated Development Plan (IDP) coordinator (40), administration clerk (31), assistant manager for payroll (48), a payroll officer (41) and secretary (40). According to reports, the investigation centres on alleged financial misconduct and the manipulation of municipal administrative and payroll processes between 2022 and 2025. “The suspects allegedly acted together in creating fictitious junior positions within the municipality. Payments were then reportedly processed through the municipal payroll system and transferred into various bank accounts,” explained Warrant Officer Ndiphiwe Mhlakuvana. He said Mthatha Hawks launched an investigation which confirmed the allegation and the creation of fictitious positions as well as the payroll payments process.
He added that transactions allegedly resulted in the unlawful financial benefit of individuals connected to the scheme, with the cumulative prejudice to the municipality exceeding R2.8 million.
“The further investigation led to the securing of warrants of arrest. The arrests were executed at various locations in Mthatha, Qumbu, Cofimvaba and Tsolo,” he added.
The suspects appeared before the Qumbu Magistrate’s Court on Wednesday, September 23 and their case was remanded to November 9. They were all granted R15 000 bail. The Hawks Eastern Cape provincial head Major General Mboiki Obed Ngwenya has commended the investigating team indicating that the investigation was conducted without fear, favour or prejudice.
