Municipal employee accused of working in cahoots with her brother and boyfriend to fleece municipality of R2 million

An Eastern Cape municipal employee was arrested for allegedly defrauding the Mzimvubu Local Municipality in KwaBhaca of R2 million. 

The Directorate for Priority Crimes Investigation (known as the Hawks) arrested Sibabalwe Mgangatho, 40, her brother Ongezwa Mngangatho, 32, and her then-boyfriend Siniko Sinethemba Novukela, 41. 

The trio faces charges of fraud and money laundering. 

Eastern Cape Hawks spokesperson Lieutenant Colonel Avele Fumba said Mgangatho was employed as an Account Expenditure Officer at the Mzimvubu Local Municipality.

According to the Hawks, the fraud took place between 2013 and 2017.

"Investigations revealed that Mgangatho allegedly exploited her position to misappropriate municipal funds.

"She was responsible for preparing vouchers, uploading payments, and capturing service provider details on the municipality's Munsoft system."

Fumba said Sibabalwe allegedly colluded with her brother, Ongezwa, a cashier at Steady Service Station.

"Ongezwa reportedly received fraudulent funds transferred from the municipality’s account, which were then redirected to his sister Sibabalwe’s account."

The Hawks said further investigation revealed that Sibabalwe allegedly conspired with her then-boyfriend Novukela to receive payments as fake service providers.

Novukela owned Lilitha Communication and Construction (Pty) Ltd.

The funds were allegedly funneled back to Sibabalwe’s account.

"The Hawks investigation further established that Sibabalwe had allegedly unlawfully and intentionally processed 48 fraudulent transactions and took R2 million from the municipality." 

All three accused appeared before the Mthatha Specialised Commercial Crime Court and were granted bail of R5,000 each.

The matter will return to court on February 3, 2025 for further investigation.

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