QUMBU, EASTERN CAPE — Six officials from the Kumkani Mhlontlo Local Municipality have appeared in the Qumbu Magistrate’s Court facing severe fraud and money-laundering charges involving over R2.8 million. The arrests follow an extensive probe by the Directorate for Priority Crime Investigation (the Hawks), which uncovered alleged manipulation of the local government’s payroll processes.
Mbulelo Jara, the Mayor of the Kumkani Mhlontlo Local Municipality, provided clarity on the unfolding scandal, confirming that the municipality includes the town of Qumbu and surrounding areas in the Eastern Cape.
Auditor-General Report Triggers Forensic Investigation
According to Mayor Jara, the irregularities were initially brought to light by the Auditor-General. The findings were revealed in a report released in November 2025, though the municipal council could only formally interact with the document after it was tabled in January.
The report highlighted severe discrepancies regarding “ghost workers” on the municipal payroll. In response, the council mandated a comprehensive verification of all employees, including councilors.
“Twenty employees could not be accounted for,” Mayor Jara explained, noting that the council subsequently resolved to hand the payroll system over for a full forensic investigation. The outcome of this forensic audit directly led to the arrests of the municipal manager and five other employees.
Municipal Manager Arrested Amid Existing Disciplinary Hearing
Among those arrested is the municipal manager, Lungile Ndabeni, who was taken into custody on Tuesday. Mayor Jara noted that Ndabeni’s arrest occurred under highly specific circumstances, as he was already on suspension for a separate, unrelated matter and was actively attending a disciplinary hearing at the time the police arrived.
“The hearing of the municipal manager is still undertaken by the institution,” Jara stated. “He was arrested whilst he was attending the disciplinary hearing because there are charges that were laid by the institution for issues that needed him to answer.”
The mayor emphasized that the institution is still in the process of ascertaining the full truth regarding the separate disciplinary charges, but confirmed that the new R2.8 million fraud allegations strictly relate to the ghost employee payroll scheme.
R80 Million Sports Field Spending Clarified
During the briefing, questions were raised regarding the R80 million cumulative expenditure on three sports fields, which was cited as a primary reason for the municipal manager’s initial suspension. Critics questioned the prioritization of sports infrastructure over other community needs and whether the spending was council-approved.
Mayor Jara firmly separated this expenditure from the current criminal charges. He clarified that the issue of the stadiums and sports fields is entirely unrelated to the current fraud allegations. The R80 million spending pertains solely to the separate disciplinary matters that led to Ndabeni’s initial suspension, whereas the current R2.8 million fraud and money-laundering charges are exclusively tied to the manipulated payroll and ghost worker syndicate.
The six accused officials are expected to continue their legal proceedings in the Eastern Cape as the Hawks and municipal authorities work to recover the allegedly stolen funds and restore integrity to the local payroll system.
