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Mthatha police are still searching for an unknown man who stole a woman's car early on Tuesday morning and drove off with her two young children still inside.

Captain Dineo Koena says the children have meanwhile been found safe and sound after the suspect dropped them off at the Chris Hani Park.

The 10-year-old boy and his six-year-old sister told police the man gave them each R20 and said they must go to school.

He then left in their mother's vehicle.

Captain Koena says the car, a white 1.3-litre Hyundai hatchback, was later found abandoned at Tsolo.

The drama began at around 7.30 am when the owner of the car collided with a young female pedestrian on the R61 between Mthatha and Ngcobo.

The woman stopped immediately and while she was attending to the 13-year-old girl, who had sustained a broken leg, an unknown man jumped into her car and drove off.