Hawks arrest five in early dawn raid in VBS fraud, corruption case

The Hawks on Thursday arrested five suspects in early dawn raids in Gauteng and Limpopo for their alleged involvement in the looting of hundreds of millions of rands from VBS Mutual Bank.

In a statement, Hawks spokesperson Colonel Katlego Mogale said the suspects are expected to answer to charges on a combined 188 counts, which include theft, fraud, corruption, money laundering and racketeering.

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It is understood that two prominent ANC politicians in Limpopo are among those who are expected to appear in the Palm Ridge Magistrate’s court on Friday after they were given warrants of arrest.

“The arrested include a managing director of VBS responsible for retail, a former chief operating officer of VBS and CEO of Vele Investments, four commission agents and an office bearer of a political party in Limpopo.

“Another suspect is an employee of the Collins Chabane Local Municipality in Limpopo. The suspect was arrested on a separate case related to the investment of municipal funds in VBS. The suspect is alleged to have contravened the Municipal Finance Management Act and charged with corruption and money laundering. Three more suspects will be handing themselves over for arrest during the course of the day,” Mogale said.

Hawks head Lieutenant-General Godfrey Lebeya lauded the team’s efforts.

“Now that the attendance of a suspected organised criminal group is secured in court, attention needs to be given to those who contributed to looting from various municipalities as well as undue beneficiaries,” Lebeya said in a statement.

The suspects are expected to appear in the Specialised Commercial Crimes Court sitting in the Palm Ridge Magistrate’s Court on Friday.

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