The Hawks’ investigation revealed that Mgangatho, an account expenditure officer at the municipality, allegedly abused her position to embezzle municipal funds.
The probe also found that the quartet had conspired to defraud the municipality, processing several fraudulent transactions that saw the authority suffer a loss of more than R2.1m.
“The criminal activities led the institution to being prejudiced to an amount of more than R2.1m,” Mhlakuvana said.
“The matter was referred to the Hawks for an asset forfeiture investigation, which led to the order being granted by the Mthatha high court.”
The three were granted bail of R5,000 each and are expected back in court on September 2, while Lilitha Communication and Construction is listed as the fourth accused.
The preservation order, granted on June 5, prohibits the use of the funds in question.
“The order was an incredible work effort by the Hawks with the Asset Forfeiture Unit of the National Prosecuting Authority,” Mhlakuvana said.
Daily Dispatch
Preservation order granted in alleged R2.1m fraud case at Umzimvubu municipality
Image: SAPS/FILE
The Mthatha high court has granted a preservation order for more than R2.1m in connection with a case of alleged corruption and money laundering at the Umzimvubu Local Municipality.
The saga began in March 2019, when a representative from the municipality discovered irregularities in payments made to suppliers in December 2016.
An investigation was launched, and a case was opened and handed over to the Hawks.
In January 2025, the investigation led to the arrests of Ongezwa Mgangatho, 32, Sibabalwe Mgangatho,40, and Siniko Sinethemba Novukela, 41.
“[Ongezwa] Mgangatho’s duties at the municipality were to prepare vouchers, upload payments, and capture service provider details on the municipal Munsoft system,” Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana said.
Eastern Cape police sergeants to appear in court on fraud charges
The Hawks’ investigation revealed that Mgangatho, an account expenditure officer at the municipality, allegedly abused her position to embezzle municipal funds.
The probe also found that the quartet had conspired to defraud the municipality, processing several fraudulent transactions that saw the authority suffer a loss of more than R2.1m.
“The criminal activities led the institution to being prejudiced to an amount of more than R2.1m,” Mhlakuvana said.
“The matter was referred to the Hawks for an asset forfeiture investigation, which led to the order being granted by the Mthatha high court.”
The three were granted bail of R5,000 each and are expected back in court on September 2, while Lilitha Communication and Construction is listed as the fourth accused.
The preservation order, granted on June 5, prohibits the use of the funds in question.
“The order was an incredible work effort by the Hawks with the Asset Forfeiture Unit of the National Prosecuting Authority,” Mhlakuvana said.
Daily Dispatch
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