Kumkani Mhlontlo Municipality Municipal Manager Ndabeni, Five Officials Arrested For Fraud, Money Laundering

Suspended Kumkani Mhlontlo Local Municipality municipal manager, Lungile Ndabeni, 52, is among the six officials arrested by the Eastern Cape Hawks on allegations of fraud and money laundering.

The arrests, carried out in Mthatha, Qumbu, Tsolo and Cofimvaba - involve R2.8 million allegedly paid to ghost employees. Hawks provincial spokesperson, Warrant Officer Ndiphiwe Mhlakuva, said 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, " Mhlakuva said." The Mthatha Hawks launched an investigation which confirmed the allegation and the creation of fictitious positions as well as the payroll payments process. The 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.”

Mhlakuva said other accused officials were Integrated Development Plan coordinator Thandokazi Njobe, 40, Administration Clerk Sanelisiwe Gcule, 48, Payroll Assistant Manager Mkhululi Nkonzombini, 41-year-old Payroll Officer Bongezwa Hlosi and 40-year-old Secretary Nothembi Gegula.

The suspects appeared before the Qumbu Magistrate’s Court on Wednesday (September 23) and were granted R15 000 bail each. The matter was postponed to November 9, 2026.

Municipal spokesperson Mamela Mangcotywa confirmed Ndabeni was still on suspension at the time of his arrest. This after he was suspended by council in August 2025. At the time spokesperson to Cooperative Governance and Traditional Affairs MEC Zolile Williams, Pheelo Oliphant, confirmed the suspension was recommended by the department. He said it related to stadiums not being complete since 2013 and yet R88 million of the Municipal Infrastructure Grant had been spent in their construction.