VBS bank: GGM official still in her post after appearing on Finance Management Act charges
A high-ranking official from the Greater Giyani Municipality (GGM), her predecessor, as well as a businessman, appeared before the Giyani Magistrate's Court for bail applications on Wednesday, March 6 in connection with the ongoing VBS Bank corruption saga.
Risimati Hitler Maluleke was granted bail of R25 000, and Nditshedzeni Mashau and Zwivhuya Goodness Thishonge were both granted R20 000 bail. “The case was remanded to May 14 to the Polokwane Specialised Commercial Crimes Court for docket disclosure. “The three accused (33, 42, and 64) were arrested in an early morning raid by the Hawks,” said Col Katlego Mogale, spokesperson for the Hawks.
The 64-year-old suspect who was previously the chief financial officer and acting municipal manager for GGM, was arrested in Lulekani. “He was arrested on charges of contravening the Municipal Finance Management Act (MFMA), corruption, and money laundering. “The 42-year-old was arrested in Giyani and is the budget manager of GGM. She is facing charges regarding the MFMA.
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“The third suspect, a 33-year-old businessman, was arrested in Muhuya village, Thohoyandou on allegations of money laundering,” she said. It is alleged that in 2017 two of the suspects invested a total of R148 656 282 into VBS Mutual Bank. Large amounts were paid to VBSaffiliated companies as so-called commissions.
It is further alleged that some of this money was laundered through several bank accounts including that of the third suspect. From the suspect’s company, a total amount of R87 600 was allegedly paid to the first suspect over some time as gratification. The DA provincial spokesperson for CoGHSTA, Lindy Wilson, said that she is pleased that the officials are held accountable.
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“The DA welcomes the 32 arrests and three convictions to date but calls on the Hawks to expedite their investigation into the politicians and their relatives who were criminally involved in the VBS Bank; these cadres deprived rural municipalities of millions which could have been used to improve the lives of thousands of people,” she said.
GGM spokesperson, Steven Mabunda, said the GGM treats the employee as innocent until proven guilty. “We do not want to make the mistake of taking action against her and then find that she is innocent. “Once the court case is over and we are in the clear, we will take action,” he said.
