Burgersfort’s businessman sentenced for his involvement in the VBS
The FTLM allegedly invested R230m with VBS which was paid in five tranches from November 15, 2016 to February 19, 2018.
BURGERSFORT – A local businessman, who previously did business with Fetakgomo Tubatse Local Municipality (FTLM), has been sentenced and ordered to pay back the money.
Keaobaka Remigious Kgatitsoe (42) was sentenced to five years’ imprisonment which was wholly suspended for five years, when he appeared in the Pretoria Specialised Commercial Crime Court last Tuesday.
The sentence is in relation to the investment made by the FTLM in the VBS.
“Kgatitsoe, the owner of Kelotloko Property, assisted the chief financial officer of the municipality to submit fictitious invoices to VBS linked to the investments made by the municipality.
“Kgatitsoe moved the received money through his accounts and eventually paid the biggest portion over to the chief financial officer,” said Colonel Katlego Mogale of Gauteng Hawks.
Gauteng National Prosecuting Authority’s Lumka Mahanjana said Kgatitsoe entered into a plea bargain with the state in terms of section 105A of the Criminal Procedure Act.
“He was found guilty for money laundering and sentenced to five years’ imprisonment wholly suspended for five years on condition that he is not found guilty of money laundering during the period. He was also ordered to pay back the amount of R463 955 to the liquidator of VBS. The amount must be paid back in four instalments,” she added.
Kgatitsoe was arrested by the Hawks on November 16, 2021 in Pretoria and was released on R50 000 bail.
He was arrested alongside Nkhono Johannes Mohlala (58), former municipal manager (MM) of FTLM and Tumelo Given Ratau (40), former chief financial officer (CFO) at the municipality.
According to the Hawks, Ratau and Mohlala are still out on bail while investigations continue.
In 2021 after their arrest, the Hawks then spokesperson, Brigadier Nomthandazo Mbambo, said, “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 trio appeared on charges of contravention of section 173 of the Municipal Finance Management Act, 2003 (Act No. 56 of 2003); corruption; and money laundering.”
The FTLM allegedly invested R230m with VBS which was paid in five tranches from November 15, 2016 to February 19, 2018.
The whole amount invested was never paid back to the municipality.
