Former FTLM officials arrested for their involvement in VBS saga
"The allegations in this matter were reported and opened for the contravention of the Municipal Finance Management Act, 2003 (Act No. 56 of 2003) for investing municipal funds with VBS Mutual Bank.
BURGERSFORT – The Hawks have arrested three suspects on Tuesday in relation with the investment of millions of rand into the collapsed VBS Mutual Bank by the Fetakgomo Tubatse Local Municipality (FTLM) .
“Three suspects, a 57-year-old former municipal manager of FTLM, a 39-year-old former chief financial officer and a 41-year-old owner of a private business, were arrested on Tuesday morning at their residences around Pretoria,” said a Hawks spokesperson, Brig Nomthandazo Mbambo.
The FTLM illegally invested R230m in the bank‚ in contravention of the Municipal Finance Management Act which does not allow municipalities to bank with a mutual bank. “The allegations in this matter were reported and opened for the contravention of the Municipal Finance Management Act, 2003 (Act No. 56 of 2003) for investing municipal funds with VBS Mutual Bank.
“The investigation revealed that FTLM invested an amount of R230m, which was paid in five trenches from November 15, 2016, to February 19, 2018,” said Mbambo.
She said the whole amount invested was never paid back to the municipality. For this article and more, grab a copy of Steelburger/Lydenburg News tomorrow.
