VBS Bank: Thulamela ex-mayor, municipal manager case set for pre-trial

The case involving the municipal manager of Thulamela local municipality, Hlengani Emanuel Maluleke, and the former mayor, Avhashoni Stephen Tshifhango, is set for a pre-trial conference at the Polokwane Specialised Commercial Crime Court in July, National Prosecuting Authority (NPA) spokesperson Mashudu Malabi Dzhangi has confirmed.

The two were arrested on allegations of corruption and maladministration in connection with the looting of the VBS Mutual Bank.

The former mayor allegedly received a Jeep Grand-Cherokee 3.6L Overland valued at over R600,000 from the director of VBS for the investment made by the Thulamela local municipality in Thohoyandou, where he was the political boss.

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The municipal manager was arrested after he allegedly invested R30 million of municipal money into VBS Bank a few days after an alleged bribe. The investment was also deemed unlawful as it contravened the Municipal Finance Management Act.

At least 20 municipalities in Limpopo, North West and Gauteng lost nearly R1.6 billion after illegally investing with the bank. In Limpopo alone, about 11 municipalities invested money to the value of R12 billion with the bank.

The investments were made despite a Treasury ban on municipalities investing public funds with a mutual bank.

Limpopo premier Stan Mathabatha fired seven mayors from municipalities that invested with the bank.

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