Kumkani Mhlontlo officials arrested for R2.8 million fraud

Six officials from the Kumkani Mhlontlo Local Municipality in the Eastern Cape have been arrested for an alleged R2.8 million fraud and money-laundering scheme. The arrests were conducted by the Hawks during operations in Mthatha, Qumbu, Cofimvaba, and Tsolo.

Investigators allege that between 2022 and 2025, the suspects—including the municipal manager, a payroll officer, and an administration clerk—worked together to create fictitious junior positions. These positions were used to process unlawful payments through the municipal payroll system into various bank accounts, resulting in significant financial prejudice to the municipality.