Three arrested for alleged corruption linked to VBS Bank

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Three people, including two former Giyani Municipal officials in Limpopo, have been arrested for their alleged involvement in the VBS saga.

Two former senior officials and a businessman were allegedly involved in the investment of more than R148-million in the now defunct VBS Mutual Bank.

Hawks’ spokesperson Katlego Mogale says the suspects aged 33, 42 and 64 were arrested in various places in Lulekani outside Phalaborwa, Giyani and in Muhuyu village outside Thohoyandou.

Mogale says the suspects are facing the charges of corruption, money laundering and contravention of municipal finance management act.

The Hawks say the suspects had invested millions of public funds from the Giyani municipality in 2017.

Mogale says large amounts were allegedly paid to VBS affiliated companies as so called “commissions”.

The suspects are expected to appear before the Giyani Specialised Commercial Crimes Court soon.

Meanwhile, the newly appointed Moses Kotane local municipality Chief Financial Officer says he was not involved in the Gauteng based West Rand District Municipality’s decision to invest municipal funds into VBS Mutual Bank.

Mzwandile Mkhize’s comments come amid reports that he along with other former senior managers at the municipality, allegedly authorised an investment of more than R300 million of municipal funds into VBS Bank in contravention of the Municipal Finance Management Act.

Mkhize was the income and expenditure manager at the municipality at the time.

Mkhize has confirmed that he is facing fraud and corruption charges emanating from the VBS Mutual Bank saga.

“I am facing corruption charges over the investment that we made to VBS Mutual Bank from the West Rand District Municipality. I was not a decision maker in line with policies of the municipality when it comes to issues of investment. It was a decision of my senior managers.”