Siyanda Ndlovu
Digital Journalist
1 minute read
10 Aug 2021
3:19 pm

Another suspect nabbed for VBS-related corruption

Siyanda Ndlovu

R92 million worth of taxpayer money was invested into VBS, in contravention of the Municipal Finance Management Act.

Picture File: eight suspects accused of looting the VBS Bank appear at Palm Ridge Specialised Commercial Crimes Court in Johannesburg, on 18 June 2020. They were each granted R100, 000 bail. Picture: Nigel Sibanda

The Hawks on Tuesday announced another breakthrough arrest of a 59-year-old suspect in Klerksdorp in connection with the looting and ultimate collapse of VBS Mutual Bank.

The directorate said that the suspect is reported to have taken part in the looting of VBS Mutual Bank through investing of the Mahikeng Local Municipality funds.

A statememnt from the Hawks said their investigation revealed that R92 million worth of taxpayer money was invested into VBS in contravention of the Municipal Finance Management Act.

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“The suspect alleged to have received gratification in the form of credit facilities for purchases of two high powered vehicles and a property in Klerksdorp amounting to over R1.7 million between 2017 and 2018,” the Hawks said in a statement.

The suspect is expected to appear in the Mahikeng Regional Court on Wednesday, and is facing charges of contravention of the Municipal Finance Management Act and the Prevention and combatting of Corrupt Activities Act.

ALSO READ: Case against 14 accused of VBS corruption postponed to October

A total of R2.2 billion was repaid to the municipalities, while R1.5 billion is either lost or unpaid.

Some of the lost funds, amounting to R67 million, were allegedly paid as brokerage commissions to entities and individuals to attract more deposits from municipalities.

The nationwide investigation has revealed that VBS employees, municipal executives and other officials received gratifications for the investments made.

Last week, a group of 14 suspects appeared in the Pretoria High Court for pre-trial proceedings, but the case was adjourned after some of the accused changed their legal teams.

They face more than 100 charges of theft, fraud, money laundering, corruption and racketeering.