Hawks probe uncovers R790 000 municipal fraud scheme
A 46-year-old East London businesswoman and her company have been found guilty and sentenced on sixteen counts of fraud and money laundering linked to a scheme that siphoned more than R790 000 from a municipal coffers in the Eastern Cape.
Sizeka Gwana-Ngalwa, who serves as director of Chemshelf 6cc, was handed down her sentence by the East London Regional Court on 17 March 2026, bringing to a close a lengthy investigation by the Serious Commercial Crime Investigation unit of the Hawks based in East London.
The fraudulent activity took place between October 2010 and June 2011, during which time the Ngqushwa Local Municipality had contracted Harvey World Travel Agency to coordinate travel arrangements for municipal officials. Claims were submitted to the agency for accommodation and flights that were never provided, with payments exceeding R790 000 channelled to various bed and breakfast establishments in and around East London — several of which were no longer operational at the time.
"The money was transferred from It's Normal Trading to Chemshelf 6 cc as Gwana-Ngalwa is the company director, hence her arrest in 2023."
Gwana-Ngalwa and her co-accused were initially apprehended by the Hawks on 29 November 2023 and subsequently released on R2 000 bail each. The investigation also led to the arrest of Nomhle Yvone Zongo (46), the former Ngqushwa Local Municipality Manager, and Nomonde Mirranda Cowa (54), who were both released on R2 000 bail. Charges against three service providers implicated in the matter were later withdrawn, while Bryce Gcinikhaya Ntsangani (65) was served with a summons to appear in court on 27 March 2025.
Hefty fines and suspended sentence for company
Following numerous court appearances, Gwana-Ngalwa received a stiff sentence. On counts one to eight, she was ordered to pay a fine of R200 000 or face three years of direct imprisonment. For counts nine to sixteen, the court imposed a further fine of R400 000, again with an alternative of three years behind bars. She was additionally directed to make an immediate payment of R10 000, followed by monthly instalments of R50 000, with the first payment due on or before 30 April 2026.
Her company, Chemshelf 6 CC, was separately sentenced to a R600 000 fine, which was wholly suspended for three years on condition that the entity is not convicted of fraud or money laundering during the suspension period.
"During external auditing, red flags were picked up, and the matter was reported to the Hawks for a probe."
The case underscores the critical role played by forensic auditing in uncovering corruption within local government structures. It also highlights the determination of law enforcement to pursue cases involving the misuse of public funds, even when investigations span more than a decade from the period in which the offences were committed.
South African municipalities lose billions annually to fraudulent procurement, and the conviction of Gwana-Ngalwa demonstrates that forensic auditing can eventually expose such schemes, even years after the fact. For residents of Ngqushwa, the R790 000 stolen represented funds meant for local service delivery, deepening distrust in municipal governance. With co-accused still facing trial and ongoing scrutiny of local government finances, further prosecutions in similar cases across the Eastern Cape remain a realistic possibility.
