Fetakgomo Tubatse’s former MM sentenced, warrant of arrest issued for ex-CFO
Under Johannes Mohlala and Tumelo Ratau’s management, the FTLM had invested a whopping R230m with VBS Mutual Bank, despite a National Treasury directive that restricted this kind of investment.
The former Fetakgomo Tubatse Local Municipality’s (FTLM) municipal manager, Johannes Mohlala (60), was handed five years’ imprisonment by the Pretoria High Court on November 6, for his involvement in the municipality’s VBS Mutual Bank saga.
Under Mohlala’s management, the FTLM had invested R230m with VBS, but the whole amount was never paid back to the municipality.
Another accused, the FTLM’s former CFO, Tumelo Ratau (42), did not attend court and a warrant for his arrest has been issued. The case was postponed to November 18 for the forfeiture of his bail.
The third accused in the case, businessman Keaobaka Remigious Kgatitsoe (44), the owner of Kelotlhoko Property Services, had previously been sentenced to five years’ imprisonment when he appeared in the Pretoria Specialised Commercial Crimes Court back on July 12, 2022.
The trio were arrested in Pretoria on November 16, 2021, on allegations of contravention of the Municipal Finance Management Act (MFMA) 56 of 2003 for investing municipal funds with VBS Mutual Bank.
“The allegations regarding this matter were reported and an investigation was opened,” said the Hawks’ spokesperson, Colonel Katlego Mogale.
She said municipalities in South Africa are not not allowed to invest with mutual banks and added that the investigation revealed that the R230m had been paid in five tranches from November 15, 2016, to February 19, 2018.
The Pretoria High Court suspended Mohlala’s sentence on the condition that he is not found guilty of the same offence in that period and that he pay an amount of R100 000 to the curator of VBS.
“In one of the segments in the broader VBS investigation, Mohlala pleaded guilty under Section 105A of the Criminal Procedure Act 51 of 1977, as well as for contravening Section 173(1) of the MFMA. He was sentenced on the same day,” added Mogale.
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On November 17, 2021, the three men appeared in the Pretoria Specialised Commercial Crimes Court on charges of contravention of Section 173(1) of the MFMA, corruption and money laundering. Mohlala and Ratau were out on a R50 000 bail before their scheduled appearance at the court.
A total of 15 municipalities countrywide made dodgy investments into VBS at the risk of collapsing service delivery. This was despite the National Treasury’s directive that restricted municipalities and their entities from placing funds into mutual banks.
In Limpopo, the municipalities that invested with VBS were Vhembe, Collins Chabane, Ephraim Mogale, Lepelle Nkumpi, Greater Giyani, Elias Motsoaledi, Makhuduthamaga, Makhado and the FTLM.
