The spectre of VBS continues to haunt those implicated in the scandal. Three suspects, aged 33, 42, and 64, were arrested during an early morning raid in Limpopo by the Serious Corruption Investigation of the Hawks.
Contravening the law
The 64-year-old suspect, who was previously the Chief Financial Officer and Acting Municipal Manager for the Greater Giyani Local Municipality, was arrested in Lulekani.
He was arrested on charges of contravention of the Municipal Finance Management Act (MFMA), corruption, and money laundering.
The 42-year-old suspect was arrested in Giyani. She was a budget manager and acting chief financial officer, and she is currently the chief financial officer of Giyani. She is facing charges of flouting the MFMA.
The third suspect, aged 33, is a businessman. He was arrested in Muhuya village, Thohoyandou, on allegations of money laundering.
Two of the suspects allegedly invested a total of R148 656 282 into VBS Mutual Bank in 2017. Large amounts were paid to VBS affiliated companies as so-called “commissions”.
Money laundered through multiple bank accounts
Some of this money was laundered through several bank accounts, including that of the third suspect.
From the suspect’s company, a total of R87 600 was paid to the first suspect over a period of time as gratification, which was a great loss to the Giyani Municipality.
The trio will make their first appearance on 6 March 2024 in the Giyani Magistrates’ Court for a formal bail application.
Three more officials arrested
Their arrest comes after, in November, the Hawks executed warrants of arrest against three accused on VBS corruption saga.
Thabo Ben Mothigoane (38), Rosihah Mangaka Ngoveni (46) and Thapelo Molatlheng (41) appeared before Lebowakgomo Magistrates’ Court on 30 October 2023 on allegations that they were all involved in investing R150 million of the Lepelle-Nkumpi Local Municipality in VBS Mutual Bank.
The trio is accused of investing R150 million with VBS Mutual Bank on November 30 2017.
The municipality was prohibited from placing any deposits, inclusive of any investment deposits with VBS. This is according to the Municipal Finance Management Act, 2003 (Act No. 56 of 2003).
In addition, it was alleged that Mothigoane who was the municipal manager at Lepelle-Nkumpi local municipality invested the R150 million with VBS and he received R100 000 as gratification and furthermore Molatlheng paid an amount of R1 180 000 from his company account (STG Financial Solutions (Pty) Ltd) to Mercedes-Benz Bedford View for the purchase of a Mercedes-Benz V250d Avantgarde motor vehicle for the benefit of Mothogoane.
– SAnews.gov.za and Sunday World
