Three more suspects have been arrested in connection with the VBS Mutual Bank multi-million rand scandal.
The Hawks say the former municipal manager of Fetakgomo-Greater Tubatse Municipality, the former chief financial officer and the owner of a private business were arrested on Tuesday morning at their residences around Pretoria.
The three are charged with contravening the Municipal Finance Management Act for investing municipal funds with VBS Mutual Bank.
Stokvel groups, pensioners and 20 municipalities lost billions of rands in the looting.
Hawks Spokesperson Nomthandazo Mbambo says: “The investigation revealed that Fetakgomo-Greater Tubatse Local Municipality invested an amount of R230-million which was paid in five trenches from 15 November 2016 to 19 February 2018. The whole amount invested was never paid back to the municipality. The three will appear at Pretoria Specialised Commercial Crimes Court on Wednesday the 17th of November 2021 on charges of Contravention of Section 173 of the Municipal Finance Management Act, 2003 for corruption and money laundering.”
Thabo Mokoena
Meanwhile, the corruption trial against former municipal manager of the Mahikeng Local Municipality in the North West, Thabo Mokoena has been set for the 15th of February next year.
This is to allow his legal representative to obtain the contents of the case docket as according to the court the investigations has been finalised.
Mokoena is facing a fraud and corruption charge after he allegedly invest R92-million of the municipality’s funds in the now collapsed VBS Mutual Bank.
He was arrested in Klerksdorp and is out on R50 000 bail. Only R7-million of the R92-million invested in VBS was paid back to the municipality.
Previous arrests
In June, three former municipal executives in Gauteng were arrested by the Hawks in connection with the VBS scandal.
They are the former municipal manager in West Rand District Municipality, acting municipal manager in Merafong Local Municipality, and former manager of income and expenditure in the West Rand District Municipality.
Earlier that month, several top VBS insiders, including board members and the chief KPMG auditor for the bank were also arrested.
More details about the arrests in the video below:
-Additional reporting by Sylvester Serame
