It was found during the investigation that twenty municipalities deposited an amount of R3.7 billion in VBS. R2.2 billion was paid back, leaving an amount of R1.5 billion in the bank.
These municipal deposits were found to have been made illegally, and the Treasury had warned municipalities that investments in mutual banks went against the prescripts of the Municipal Finance Management Act. No municipal officials have faced any sanction as yet.
Batohi was admant though that “… the country may rest assured that we will certainly prosecute wherever the evidence takes us. I’m not going to outline any particular category of persons, but if there is evidence of criminality and we are satisfied that the relevant threshold for the probability of a successful prosecution has been met, we will prosecute wherever that takes us.”
Lebeya said the current arrests only involved those within the bank, who facilitated the theft. He did not exclude the possibility of municipal officials, saying there will still be further legs to the investigation.
He said: “Investigations remain at a sensitive stage.”The investigations have not concluded, the Hawks would continue with more investigations on the matter.”
In response to a question regarding media reports into where money looted from the bank flowed to, Lebeya replied that while the Hawks took these reports into account, they cannot be entered as evidence in a court, as this requires proof beyond any doubt.
Asked if EFF deputy president Floyd Shivambu has been in contact with the Hawks, Lebeya said he could not confirm the content of discussions with Shivambu.
He was at pains to stress that the Hawks “are not investigating any specific person,” but were guided by the evidence and the crime committed.
Among those expected to be arrested is former VBS and Vele Investments chairperson Tshifhiwa Matodzi, the alleged kingpin of the theft of depositor’s funds from the bank.
Of the R2 billion that was taken, Vele allegedly received R936 million, which was used to purchase several other companies.
Matodzi himself, forensic investigations found, received R325 million.
Most of the funds stolen represent investments made by numerous local and district municipalities from around the country.
** This article was updated throughout the briefing.
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