A suspended Eastern Cape municipal manager and five other officials have been released on bail after being arrested for their alleged involvement in a scheme to create fictitious junior municipal positions. The six suspects, employed by the rural Kumkani Mhlontlo Local Municipality, appeared in the Qumbu Magistrate’s Court on Wednesday. They were arrested by the Hawks’ Serious Commercial Crime Investigation team during a co-ordinated operation in Mthatha, Qumbu, Cofimvaba and Tsolo.
The alleged scheme involved creating fictitious junior positions within the municipality, with payments processed through the municipal payroll system and transferred into various bank accounts. According to Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana, the alleged manipulation of the municipality’s administrative and payroll processes took place between 2022 and 2025. The municipality suffered losses totalling more than R2.8m as a result of the alleged scheme.
The six suspects include municipal manager Lungile Ndabeni, 52, integrated development plan co-ordinator Thandokazi Njobe, 40, administration clerk Sanelisiwe Gcule, 31, assistant manager for payroll Mkhululi Nkonzombini, 48, payroll officer Bongeziwe Hlusi, 41, and former intern Nothembi Gegula, 40. Ndabeni was arrested at a guest house in Tsolo at about 11am while he was in his vehicle and handed over a licensed pistol and two loaded magazines to the officers.
The case was postponed to November 9 in the Mthatha Specialised Commercial Crimes Court for disclosure of the contents of the docket. Mhlakuvana said investigators had identified about 12 allegedly fictitious positions, which were junior positions. The Hawks said further arrests could not be ruled out. Two suspects were arrested in Tsolo, one in Qumbu, two in Mthatha and one in Cofimvaba.
Ndabeni has been on precautionary suspension since August last year on the advice of the co-operative governance and traditional affairs department, after he failed to provide answers on several matters, including investigations into municipal projects. His suspension was later extended by the council in December, but the Mthatha High Court overturned the extension on February 27, allowing him to return to work. However, he was promptly suspended again.
Xolisa Jikela is serving as acting municipal manager, with his three-month stint expected to end this month. The Dispatch reported in 2023 that co-operative governance MEC Zolile Williams had raised concerns over Ndabeni’s appointment, arguing that he did not meet the basic requirements for the municipal manager position, which included five years’ experience at senior management level.
Municipal spokesperson Mamela Mangcotywa said on Wednesday that the municipality would co-operate with law enforcement officials. The municipality notes the arrests and will continue to co-operate fully with the relevant law-enforcement authorities and provide any assistance or information required within the applicable legal framework.
Key points
- The six suspects were released on bail of R15,000 each.
- The alleged scheme resulted in losses of more than R2.8m for the municipality.
- Further arrests in the case cannot be ruled out.
