Duo sentenced over municipal fraud scam

Former Intsika Yethu Local Municipality expenditure manager Nonesi Mguca, 51, and former payroll manager Namhla Toni were sentenced to pay a R20,000 fine each or undergo 10 years’ direct imprisonment of which the R10,000 is payable on the day of sentencing and the remainder deferred for 10 months.

Hawks spokesperson Captain Yolisa Mgolodela said the Mthatha specialised commercial crime court convicted and sentenced Mguca and Toni on February 7 2024.

“This is subsequent to their arrest by the Hawks on October 3 2023 for charges of fraud and released on a warning the same day,” she said.

Mgolodela said in May 2019, an expenditure officer at Intsika Yethu Local Municipality in Cofimvaba was doing the month-end expenditure report which included the staff salaries.

“She noticed that the remuneration list was not the same as the one she already imported to First National Bank for the same month.

“She scrutinised the reports and established discrepancies which started in September 2018 in the monthly salaries of the duo. Mguca admitted that she was in debt to First National Bank and Toni was having a garnish order from South African South African Revenue Services (Sars).

Consequently Mguca was instructed by Toni to make fraudulent changes on the payroll system to avoid those deductions from their salaries,” Mgolodela said.

She said the debts of more than R170,000 owed by the duo were paid by the municipality.

“Extensive probing by the Hawks confirmed the charges. The duo made several court appearances before their conviction and sentencing for fraud on February 7 2024,” she said.