The Greater Giyani Municipality council on Friday fired the Chief Financial Officer, Risimate Hitler Maluleke over his alleged involvement in the VBS Mutual Bank debacle.
Maluleke was fired for suspected involvement of the transfer of R160 million of municipal funds into the VBS Mutual Bank in contravention of the treasury regulations.
Municipal spokesperson, Steven Mavunda confirmed that Maluleke was fired during a special council meeting.
Read: Giyani Municipality VBS investment investigated
He said Maluleke’s dismissal followed after forensic investigations found that he was directly involved in the VBS investment saga and he is also found to have authorised payment for some non existing projects. Mavunda said that Maluleke’s involvement in the scandal came to light when the municipal manager who was hired in January this year, uncovered some suspicious transactions during the course of his duties.
“Independent forensic investigations were conducted and a report compiled recommended that the CFO, as well as the director of technical services, Precious Mathebula be suspended pending disciplinary hearings,” explained Mavunda.
A day before the disciplinary hearings, Mathebula resigned and Maluleke was fired following an outcome of his disciplinary hearings. Mavunda said a criminal case was also opened against the two men with the Hawks in Polokwane in August.
He said that the municipality remained unsure as to what would happen with the approximately R160m the local authority had invested with VBS bank. “We might not get it back but for now, we are surviving with what we have,” said Mavunda.
