The Giyani municipality in Limpopo has opened criminal cases against its two former senior officials – the Chief Financial Officer (CFO) and the Director of Technical services.
The former CFO Hitler Maluleke has been fired, while the former technical services director Precious Mathebula resigned after their involvement in the VBS scandal.
The municipality had invested R161 million in VBS Mutual Bank.
The duo are also allegedly involved in paying service providers for work not done.
Municipal spokesperson Steven Mabunda says they have also initiated processes to recoup the lost money.
“The council has also given authority to the Municipal manager to take all steps necessary in ensuring that the monies, or costs due to the municipality, is followed through… as a follow up to that one, the municipality represented by the Municipal manager, we opened a criminal case with the Hawks to ensure that all monies that are owed to the municipality are recouped.”
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The Vhembe District Municipality has also acted swiftly on officials involved in the VBS scandal.
On Friday, the municipality suspended its Manager, Reuben Rambado, and Chief Financial Officer Nyiko Machava, who are implicated in the bank’s scandal.
The municipality’s Executive Mayor, and Limpopo African National Congress (ANC) Deputy Chairperson, Florence Radzilani, has also been implicated in the scandal.
The Reserve Bank’s forensic report found that the municipality had invested more than R 300-million in the mutual bank.
