THE Hawks’ Serious Corruption Investigation Team on Tuesday arrested a 59-year-old suspect in Klerksdorp in connection with corruption relating to the now-defunct VBS Mutual Bank.
The suspect was expected to appear in the Mahikeng Regional Court on Wednesday on charges of contravening of the Municipal Finance Management Act (MFMA) and the Prevention and Combating of Corrupt Activities Act.
The Directorate for Priority Crime Investigation said this was part of an ongoing fight against corruption and maladministration.
A statement by the directorate indicated that the suspect was allegedly involved in the looting of the bank through an investment involving funds from the Mahikeng Local Municipality.
The investigation found that R92 million of taxpayers’ money was invested in VBS in contravention of the MFMA.
The suspect was alleged to have received gratification in the form of credit facilities for purchasing two high-powered vehicles and a property in Klerksdorp amounting to more than R1.7m between 2017 and 2018.
Mahikeng is one of the 20 municipalities that invested municipal funds in VBS. The statement further said that of the R92m, only R7m was paid back to the Mahikeng municipality.
The matter had been transferred from the Palm Ridge Commercial Court in Ekurhuleni for pre-trial, but was postponed to October because some of the accused had recently changed their legal representation.
Msiza, former VBS chairperson Calvin Tshifhiwa Matodzi and 12 others, including bank executives, politicians, municipal officials and managers, were formally indicted by the National Prosecuting Authority in March for allegedly looting nearly R2.3 billion from mostly poor people in rural areas, particularly around the bank’s headquarters in Thohoyandou in Limpopo.
About 14 municipalities in Limpopo, North West and Gauteng lost nearly R1.6bn after illegally investing with the bank.
In other news – Power FM remembers Bob Mabena a year after his death
POWER FM has remembered Bob Mabena a year after his death. The station had the late radio host’s family and friends chat to the presenters throughout the day.
Bob, who was famously known as “The Jammer”, died on 10 August 2020 from cardiac arrest. Learn more
Source: IOL
