Former Elias municipality officials arrested for VBS investmentsNovember 23, 2022
A 59-year-old former municipal manager of Elias Motsoaledi Municipality and the current mayor of the Sekhukhune District Municipality were arrested on Wednesday in Groblersdal, Limpopo, for investments of millions to VBS Mutual Bank.
Police spokesperson Colonel Katlego Mogale said the duo appeared at the Pretoria Specialised Commercial Crimes Court and were found in contravention of the Municipal Finance Management Act.
Cash, accommodation and flights
“The municipal manager is said to have been instrumental in investing R190 million municipal funds into VBS Mutual Bank wherein the mayor received over R300 000 in gratification which included cash, accommodation and flight tickets.”
“These were channelled through a company belonging to her children. The two suspects are appearing in the Pretoria Specialised Commercial Crimes Court this afternoon on charges corruption, money laundering and contravention of the Municipal Finance Management Act as well as the Banks Act,” said Mogale.
A 2018 forensic investigation report into the affairs of VBS Mutual Bank revealed large-scale looting and recommended that the bank’s former executives and government officials who invested in the institution should face criminal charges and be held liable in civil proceedings.
The report by Advocate Terry Motau, titled The Great Bank Heist, was commissioned by the South African Reserve Bank (Sarb).
At least 20 municipalities in Limpopo, North West and Gauteng lost nearly R1.6 billion after illegally investing with the bank.
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