Hawks arrest former Giyani manager over VBS corruption

One former and one current senior officials at the Limpopo’s Greater Giyani local municipality, in addition to a businessman. were arrested by the Hawks yesterday for corruption linked to the VBS Mutual Bank saga involving more than R148 million.

Former CFO and acting municipal manager

One suspect, 64, was previously the chief financial officer and acting municipal manager for the municipality.

He was arrested in Lulekani township, a sprawling settlement outside Phalaborwa near the Kruger National Park in the Mopani region.

Hawks spokesperson Colonel Katlego Mogale said the man was arrested on charges of contravention of Municipal Finance Management Act (MFMA), corruption and money laundering.

The second suspect, a 42-year-old woman, was arrested in Giyani. She was a budget manager, acting chief financial officer and currently the chief financial officer of the municipality. She is facing charges of flouting the MFMA.

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Allegations of money laundering

The third accused, a 33-year-old businessman, was arrested in Muhuya village, Thohoyandou, on allegations of money laundering.

“During 2017, two of the suspects allegedly invested R148 million into VBS Mutual Bank. Large amounts were apparently paid to VBS affiliated companies as ‘commissions’. Some of this money was allegedly laundered through several bank accounts, including that of the third suspect,” said Mogale.

“From the suspect’s company, R87 600 was allegedly paid to the first suspect over a period of time as gratification which was a great loss to the municipality.”

The three accused will make their first appearance in the Giyani Magistrate’s Court today for a formal bail application.

Scratching the surface

Seun Mogotji of the Bolsheviks Party said the arrests were tantamount to scratching the surface.

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“The VBS ghost will continue to haunt them forever. The tears of the scammed pensioners will not be in vain,” said Mogotji.

“The outgoing Limpopo premier [Stan Mathabatha] had a chance to clean-up the VBS mess, but chose to protect his comrades. Some are now occupying high positions in the Limpopo legislature. This is far from over.”

Limpopo government officials declined to comment on the matter and referred all enquiries to the Hawks.