Three suspects arrested in connection with VBS corruption

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Two senior officials from the Greater Giyani Local Municipality as well as a businessman have been arrested for alleged fraud and violation of the Municipal Finance Management Act. 

The arrests relate to a 2017 fraudulent VBS Mutual Bank investment.

According to the Hawks spokesperson Colonel Katlego Mogale, three suspects aged 33, 42 and 64 were arrested in an early morning raid by Serious Corruption Investigation of the Hawks.

“The 64-old-suspect who was previously the Chief Financial Officer and acting Municipal Manager for the Greater Giyani Local Municipality was arrested in Lulekani.  

“He was arrested on charges of contravention of Municipal Finance Management Act (MFMA), corruption and money laundering.

“The 42-year-old arrested in Giyani, was a Manager Budget and acting Chief Financial Officer, currently the Chief Financial Officer of Giyani. 

“She is facing charges of flaunting the Municipal Finance Management Act (MFMA). The third suspect (33), a businessman, was arrested in Muhuya village, Thohoyandou on allegations of money laundering,” she said.

Col Mogale stated that during 2017, two of the suspects invested a total of R148 656 282.00 into VBS Mutual Bank.

She continued; “Large amounts were paid to VBS affiliated companies as so called “commissions”. Some of this money was laundered through several bank accounts including that of the third suspect.

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“From the suspect’s company, a total amount of R87 600.00 was paid to the first suspect over a period of time as gratification which was a great loss to the Giyani Municipality.”

Mogale said the trio will make their first appearance on Wednesday, March 6, in the Giyani Magistrates’ court for formal bail application.

Meanwhile, the newly appointed Moses Kotane local municipality Chief Financial Officer says he was not involved in the Municipality’s decision to invest municipal funds into VBS Mutual Bank, SABC News reports.

Mzwandile Mkhize was the income and expenditure manager at the municipality at the time.

“I am facing corruption charges over the investment that we made to VBS Mutual Bank from the West Rand District Municipality.

“I was not a decision maker in line with policies of the municipality when it comes to issues of investment. It was a decision of my senior managers.”