LIMPOPO – NPA regional spokesperson Mashudu Malabi-Dzhangi in a statement today confirmed that the former mayor of Thulamela Local Municipality and the municipal manager (MM) appeared in the Thohoyandou Magistrate’s Court on Tuesday morning (February 8).
The former mayor, Avhashoni Tshifhango, faces a charge of corruption while MM Hlengani Maluleke faces a charge of contravening the Local Government: Municipal Finance Management Act 56 of 2003, confirmed Dzhangi in the statement.
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The NPA did not oppose the bail application and both accused were released on R30 000 bail, each.
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She added that the case has been postponed to May 24 and will be heard in the Polokwane Specialised Commercial Crimes Court.
The duo were taken into custody on Monday morning (February 7) on allegations of corruption and maladministration in connection with the Venda Mutual Bank (VBS) looting saga.
Around 20 municipalities in the Limpopo, North West and Gauteng areas lost nearly R1.6b after illegally investing with the VBS bank.
The national head of the Directorate for Priority Crime Investigation, Dr/Adv Godfrey Lebeya, explained their arrests follow an intensive investigation into the inappropriate investment of state funds into VBS. The investment by the Thulamela Local Municipality was to the amount of R30m.
“The former mayor seemingly accepted a Jeep Cherokee valued at over R638 000 through a well-known VBS money laundering third party, while the MM reportedly invested R30 million of the municipality’s money into VBS.”
Their arrest brings the number of people arrested in connection with the VBS-related cases to 25. Over 100 charges have been laid, said Lebeya.
