A suspected would-be-robber was shot and killed, allegedly by members of his own gang, in a botched robbery in East London.

A Johannesburg businessman was handing out wages to his 50 labourers on the roadside when they were accosted by three armed men on Friday afternoon.

Charles Woelwith, 43, was shot in the neck.

His business partner, Johan van der Merwe, said Woelwith was fighting for his life at Life Beacon Bay Hospital.

They co-own Invictus construction company contracted by the Eastern Cape government to install internet fibre optic cables in the Eastern Cape.

Witnesses said four shots were fired during the ambush.

The attack took place near the N2 on the Nahoon Dam turn-off between East London and Mdantsane.

Workers at the scene said Woelwith had been paying wages to labourers who were queuing on the side of the road for their money.

Van der Merwe said he was at a B&B in Gonubie when Woelwith was shot.

“A silver Toyota Tazz pulled up and a man with a knife got out and started charging forward, other suspects remained in the car but started shooting from inside.

“Four shots were fired.

“Our boss fell down first, followed by the man [with the knife],” said Thobani Mpana, 30.

The two suspects in the car sped off emptyhanded after the shooting. Woelwith was rushed to hospital by an employee while the dead suspect was left bleeding on the side of the road.

Xolani Neti, 43, said the gunshots sent everyone diving for cover.

Cambridge police spokesperson Captain Mluleki Mbi confirmed that police responded to the incident. However, he could not supply further details.

By 3.30pm on Friday, Van der Merwe said Woelwith was still in theatre and on life support.

His wife was scheduled to arrive in East London from Johannesburg on Saturday morning. The couple have two young children.