Former Limpopo mayor, municipal manager due in court over VBS scandal

Former Limpopo ANC mayor and municipal manager will appear in the Thohoyandou Magistrate’s Court on Tuesday in connection with their alleged involvement in the illicit investment of municipal millions into the Venda Business Society (VBS) Mutual Bank.

The two, who were arrested by the Hawks on Monday, are from the Thulamela local municipality in Thohoyandou in the Vhembe district.

The Hawks said on Tuesday it cannot rule out the possibility of making more arrests in the
municipality and elsewhere. Both the mayor and his former colleague are in custody, awaiting their first appearance today.

They will face charges of corruption and maladministration for allegedly investing R30 million of municipal funds without following relevant legislations.

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“I have indicated that investigations on the municipalities are at an advanced stage. This is the beginning and all the other cases are receiving the necessary attention,” said the national head of the Directorate for Priority Crime Investigation [Hawks], Godfrey Lebeya, in a media statement.

Lebeya said so far, at least 25 people have been arrested and are facing more than 100 charges.

“More suspects are expected to be arrested during the course of the investigation as about 20 municipalities in Limpopo, North West and Gauteng, lost nearly R1.6 billion after illegally investing with the bank,” the statement
reads.

The arrest in Thulamela comes after another arrest of three suspects in November in connection with the looting of the collapsed mutual bank.

The three suspects – a 57-year-old former municipal manager of the Fetakgomo-Greater Tubatse local municipality in Limpopo, a 39-year-old former chief financial officer, and a 41-year-old business owner – were arrested at their homes in Pretoria in November last year.

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They were charged with corruption, money laundering and contravening Section 173 of the Municipal Finance Management Act. The Hawks alleged the municipal officials invested an amount of R230 million, “which was paid
in five tranches from 15 November 2016, to 19 February 2018, and that the money was never paid back to the municipality”.

At least 19 people have been arrested in connection with the looting of VBS. The arrests in Pretoria comes four months after three former West Rand district municipality employees were also arrested.

In 2019, the Limpopo ANC fired seven mayors for illegally investing with the bank.

– news@citizen.co.za