“Investigations revealed that Mgangatho was allegedly exploiting 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.”
The matter was referred to the Hawks for further investigation, which uncovered that Mgangatho 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 Mgangatho’s account.
Further investigation revealed that Mgangatho allegedly conspired with her then-boyfriend Novukela and his company, Lilitha Communication and Construction (Pty) Ltd, to receive payments as fake service providers, with the funds allegedly funneled back to Mgangatho’s account, said Fumba.
The Hawks investigation further established that Sibabalwe had allegedly unlawfully and intentionally processed 48 fraudulent transactions and apparently drained off over R2 million from the municipality.
All three accused appeared before the Mthatha Specialised Commercial Crime Court and were granted bail of R5,000 each. They appeared again on 3 February 2025 and the case was postponed until 18 February for contents of the docket, Fumba said.
“It came as a surprise that we learn from the media that a Makana employee who is currently employed at the Budget & Treasury department as Accounts Expenditure Officer, a similar position that she held in her previous employ at Mzimvubu Local Municipality, was arrested by the Hawks and is currently out
on bail as per the media statement.”
The DA said Mgangatho resigned from Umzimvubu after a disciplinary hearing.
Makana’s spokesperson Yoliswa Ramokolo confirmed to Grocott’s Mail this week that Mgangatho is in the employ of the Makana Municipality.
Asked if the municipality was aware of the charges against her, Ramokolo stated: “Yes, Ms Mgangatho has reported that her former employer has opened a case, and she only became aware of the matter in January 2025.”
Ramokolo said the municipality hired Mgangatho in February 2022, and at that time the allegations had not been levelled against her.
The municipality has not responded to the DA’s calls for a precautionary suspension and whether the municipality felt its funds were safe under Mgangatho.
The DA has given the municipality an ultimatum. If Kate does not act, the party will request the Special Investigating Unit (SIU) to launch a formal investigation into this matter.
“This arrest underscores a disturbing and ever-growing trend: Makana Municipality has become a haven for corrupt officials from the former Transkei region, many of whom have faced investigations or been dismissed from their previous roles. It is clear that a lack of proper vetting, coupled with rampant nepotism, has allowed these individuals to infiltrate key positions, compromising the integrity of our local government.
With officials like this, the question looms: is the Makana Municipality’s purse safe?
“Ratepayers are rapidly losing confidence in the municipality’s ability to manage their rates and services. The revelation that an alleged fraudster holds a key position in the Budget and Treasury department will only exacerbate this erosion of trust.
The DA will continue to fight for transparency, accountability, and consequence management – because our community deserves nothing less.”
This is a developing story.
