AFRICAN MIRROR REPORTER
THREE former municipal bosses, who took ratepayers millions and invested them in the now-defunct VBS Bank have appeared in court after they were arrested by The Hawks, South Africa’s elite crime-fighting unit.
The trio was released on bail of R50 000 each and ordered to appear in court on October 22.
The three are among the 20 municipal bosses who took R2.7-billion meant for services to ratepayers and deposited it at the VBS Bank in contravention of the Municipal Finance Management Act.
The three are Moroashike Mokoena (60), a former Municipal Manager in West Rand District Municipality, Mzwandile Mkhize (37) , a former Chief Financial Officer in West Rand District Municipality and now acting Municipal Manager in Merafong Local Municipality, and Romeo Mohaudi (34), a former manager: Income and Expenditure in the West Rand District Municipality.
According to The Hawks, a total number of twenty (20) municipalities deposited an amount of R3,7 billion [amount repaid totals R2,2 billion whilst the amount lost/unpaid amounts to R1,5 billion]. Some of the lost funds amounting to R67 million were allegedly paid as brokerage commissions to entities and/or individuals to attract more deposits mainly from municipalities. The Hawks said the nationwide investigation has revealed that VBS employees, municipal executives and other officials received gratifications for the investments made.
They were arrested yesterday by The Hawks’ Serious Corruption Investigation at several locations within Gauteng.
In a statement, Lieutenant-Colonel Katlego Mogale, a spokesperson for The Haws, said the arrests were based on the ongoing investigation of maladministration and corruption in the looting of the VBS Mutual Bank. “The trio will be appearing tomorrow, 29 June 2021 in the Pretoria Specialised Commercial Crimes court. The allegations in this morning’s arrests relate to investments into VBS Mutual Bank (VBS) made by municipalities. The investments made by the municipalities into VBS are reported to have been done in contravention of the provisions of the Municipal Finance Management Act by investing municipal funds with a mutual bank,” Mogale said.
She said the during the arrests, a search and seizure operation was also conducted in order to confiscate IT equipment which could contain pertinent documentation and/or articles relating to the investigation.
The National Head of the Directorate for Priority Crime Investigation, Lieutenant-General Godfrey Lebeya has previously indicated that following the arrests and securing of court attendance of the main players in the VBS investigation, arrests within municipalities will follow.
A total of 14 VBS executives are expected to face 188 counts of corruption, fraud, money-laundering and racketeering when their trial resumes in August.
Those on trial – who are out on bail ranging from R10 000 to R100 000 are:
- Tshifhiwa Matodzi – the former VBS chairperson.
- Andile Ramavhunga – the former chief executive.
- Robert Madzonga – the former chief operating officer.
- Mulimisi Maposa – VBS’s former managing director of retail.
- Phophi Mukhodobwane – the former treasurer.
- Sipho Malaba – ex-auditor at KPMG.
- Lieutenant-General Avhsahoni Ramikosi – a VBS non-executive director.
- Ernest Nesane – representative of the Public Investment Corporation (PIC).
- Paul Magula – also a PIC representative.
- Kabelo Matsepe – a former ANC leader in Limpopo.
- Danny Msiza – the Treasurer of the ANC in Limpopo.
- Ralliom Razwinane – Commission Agent.
- Takunda Mucheke – Commission Agent.
- Tshianeo Madadzhe – Commission Agent.
A former chief financial officer Phillip Truter is already serving a seven years sentence after he pleaded guilty. He is expected to testify against his former colleagues.
