Home South African More VBS suspects to face the music

More VBS suspects to face the music

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The Hawks on Tuesday arrested a 59-year-old suspect in connection with corruption relating to the now-defunct VBS Mutual Bank.

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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 national head of the Directorate for Priority Crime Investigation, Lieutenant-General Lebeya, praised the team for a job well done.

“As indicated previously, all those who participated in that illegal scheme, which resulted in the loss of taxpayers’ monies into VBS matters, will be held to account,” said Lebeya.

Last week, 14 people accused of looting VBS Mutual Bank, including Limpopo ANC treasurer Danny Msiza, appeared briefly in the Gauteng High Court in Pretoria.

The suspects faced more than 100 charges for their alleged role in the heist. The case was postponed to October 12.

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.

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