Pretoria - A former mayor and municipal manager of Thulamela Municipality in Limpopo are scheduled to appear before the Thohoyandou Magistrate’s Court today (Tues) in connection with the looting of the VBS Mutual Bank.
The pair, aged 49 and 52, and whose names are known to Pretoria News but are being withheld pending their court appearance, were arrested yesterday by the Hawks, and will face charges of corruption and maladministration.
Speaking to Pretoria News after the arrests, Hawks spokesperson Colonel Katlego Mogale said the duo were arrested after investigations by its Serious Corruption Investigation unit into inappropriate administering of State funds into VBS by the municipality.
She said that the investigation revealed that the municipality invested an amount of R30 million into the now defunct bank.
The former mayor is suspected to have accepted a Jeep Cherokee valued at over R638 000 through a well-known VBS money laundering third party, while the municipal manager allegedly invested R30 million of municipal money into VBS in contravention of the Municipal Finance Act.
Head of the Directorate for Priority Crime Investigation, Dr Advocate Godfrey Lebeya said: “I have indicated that the investigations on the municipalities are at an advanced stage. This is the beginning, and all the other cases are receiving the necessary attention.”
So far, at least 25 people, including Limpopo ANC treasurer Danny Msiza and municipal officials have been arrested, together facing more than 100 charges.
Mogale said: “There are more suspects that are expected to be arrested during the course of the investigation.”
Asked why the VBS matter has been taking so long, Mogale said: “This is not an open and shut case. It’s going to happen for a very long time. More arrests are expected.”
About 20 municipalities in Limpopo, North West and Gauteng, lost nearly R1.6 billion, after illegally investing with the bank.
Overall, the suspects are accused of looting over R2.3 billion and collapsing the bank in 2018.
Community groups and individuals, mostly the elderly from rural Vhembe district, had invested their monies with the bank.
Some of the accused include Msiza and former VBS chairperson Calvin Tshifhiwa Matodzi and bank executives, politicians, municipal officials and managers, who were formally indicted by the National Prosecuting Authority in March last year.
All the suspects have denied the charges after advocate Terry Motau penned a report that blew the lid off the VBS scandal, implicating them in 2019.
According to the 206-page indictment, the NPA alleged that Msiza was the central figure between VBS and the municipalities that had illegally invested monies, in contravention of the Municipal Finance Management Act.
Msiza, Matodzi, former ANCYL Limpopo leader Kabelo Matsepe, Rallion Razinnane, Takunda Edgar Michele,Tshianeo Madadze, Andile Malusi, Ramavhunga Mulimisi, Solomon Maphosa, Simpho Malabar, Phalaphala Ramikosi, Thifhelimbilu Nesane, Paul Manila, and Robert Madzonga are out on bail, of between R50 000 and R100 000 each, after being charged with180 counts, including racketeering and corruption.
Pretoria News