A suspended municipal manager and five colleagues in the Eastern Cape are now facing fraud and money laundering charges after allegedly running a ghost payroll scheme that drained more than R2.8 million from municipal coffers.
The six appeared before the Qumbu Magistrate’s Court this week, a day after Hawks officers from the Serious Commercial Crime Investigation team swooped on them in a coordinated operation across several towns.
Who Are the Accused
The accused are municipal manager Lungile Ndabeni (52), integrated development plan coordinator Thandokazi Njobe (40), administration clerk Sanelisiwe Gcule (31), assistant payroll manager Mkhululi Nkonzombini (48), payroll officer Bongeziwe Hlusi (41), and a former intern named Nothembi Gegula (40).
Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana says the group allegedly worked together to invent junior positions inside the municipality that simply did not exist. Nobody was doing these jobs. Yet salaries kept going out every month as though real employees were filling those posts.
How the Alleged Scheme Worked
On paper, what allegedly happened here was almost too easy. Fake job titles were added to the payroll system, sitting quietly alongside the names of genuine staff members. From there, the “salaries” for these made up positions were processed just like anyone else’s pay. Instead of landing in the pocket of a real worker, though, investigators say the money was funnelled into various bank accounts linked to the accused.
So far, the Hawks have traced around 12 fictitious positions connected to the case. Mhlakuvana wasn’t willing to share exactly what job titles were used, saying that part of the investigation is still under wraps.
“The positions, according to the investigation, are junior positions. However, we cannot divulge more details,” he said.
Scheme Allegedly Ran for Three Years
What stands out most about this case is just how long it apparently went unnoticed. Mhlakuvana says the tampering with the municipality’s payroll and administrative processes stretches back to 2022 and only stopped in 2025.
Yet the case only landed on the Hawks’ desk in July this year. Once detectives started pulling old records, the trail led much further back than anyone expected.
“This matter was reported to the Hawks in July this year. However, when you date back and check, our investigation has revealed that this thing started in 2022 until 2025,” Mhlakuvana explained.
By the time it was picked up, the municipality had lost more than R2.8 million, money that should have gone toward real salaries and services for the community it serves.
Arrests Carried Out Across Four Towns
Rounding up all six suspects wasn’t a simple, one stop job. Police had to move on several fronts at once to make sure nobody slipped away.
Two people were arrested in Tsolo, two in Mthatha, one in Qumbu and one in Cofimvaba. None of them came forward on their own, according to Mhlakuvana.
“They never handed themselves over,” he said, noting that detectives from the serious organised crime investigation unit helped carry out the operation.
| Detail | Information |
|---|---|
| Number of accused | 6 |
| Amount allegedly lost | Over R2.8 million |
| Alleged fictitious positions | About 12 |
| Time period | 2022 to 2025 |
| Case reported to Hawks | July 2026 |
| Arrest locations | Tsolo, Mthatha, Qumbu, Cofimvaba |
| Court | Qumbu Magistrate’s Court |
| Next appearance | Mthatha Specialised Commercial Crimes Court, 9 November |
Bail Granted
All six were granted bail of R15,000 each, which isn’t unusual at this stage of a case, particularly when the accused have permanent addresses and no record of dodging court dates.
The matter has been postponed to 9 November, when it moves to the Mthatha Specialised Commercial Crimes Court. That’s when the state is expected to hand over the docket in full, giving the defence team a proper look at the evidence against their clients.
Why Ghost Payroll Fraud Is a Growing Problem
Sadly, this isn’t a one off story. Ghost employee scams, where fake names are slipped onto a payroll purely so someone can pocket the salary, keep popping up in municipalities and government departments around the country.
It’s a scheme that thrives on how ordinary a payroll system looks from the outside. At its core, it’s really just a list of names tied to bank accounts, and when nobody is watching closely enough, it becomes surprisingly simple for someone with the right access to add a name that shouldn’t be there.
The Directorate for Priority Crime Investigation (Hawks) has been putting more effort into rooting out this type of financial crime in local government, given how directly it hurts service delivery in communities already stretched thin.
Residents also have a part to play here. The National Anti Corruption Hotline, run by the Public Service Commission, gives members of the public a way to report suspected corruption without putting their name on the line.
What Happens Next
For now, this case is still at an early stage. Nobody has been convicted, and all six accused remain innocent until proven otherwise in a court of law.
The November hearing will matter a lot. Once the docket is disclosed, both sides will finally have a clear view of the evidence, including bank statements and payroll records that investigators leaned on to build their case.
Stories like this are a good reminder that even a system as everyday and simple as a municipal payroll needs someone keeping an eye on it. Without that oversight, it becomes easy for a small group of insiders to quietly exploit the gaps for years before anyone catches on.
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