Ex-Vhembe municipal manager faces corruption charges
Reuben Rambado faces corruption charges over irregular appointments and fallout from the R300m VBS Mutual Bank investment scandal.
LIMPOPO – Reuben Rambado, the former municipal manager of the Vhembe District Municipality, appeared in the Thohoyandou Magistrate’s Court last Tuesday facing charges of corruption and contravening the Local Government Municipal Financial Management Act 56 of 2003.
According to Mashudu Malabi-Dzhangi, spokesperson for the National Prosecuting Authority (NPA) in Limpopo, Rambado used his position as accounting officer to improperly influence the appointment of candidates.
He is said to have directed panel members to appoint Lindelani Tshikororo as response and recovery coordinator and Ntakadzeni Ramabannda to the position of land use management, for personal gain. Tshikororo has since passed away.
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Rambado was released on R2 000 bail, and his case was postponed to April 23.
The matter has also been transferred to the Giyani Specialised Commercial Crimes Court for trial.
He was appointed in the position of municipal manager on June 1, 2017, and his tenure was marred by controversy.
The municipality later confirmed allegations made by the DA, that Rambado reportedly received a R1m golden handshake after his employment was terminated.
This payout was made despite him being on paid suspension at the time for allegedly authorising an illegal R300m investment into the now-liquidated VBS Mutual Bank.
Municipal spokesperson Matodzi Ralushai stated at the time that the payout followed a council-approved settlement.
The DA has since criticised the municipality, noting that the Limpopo Department of Co-operative Governance, Human Settlements and Traditional Affairs had advised against settlements for officials implicated in the VBS scandal.
Ralushai admitted the municipality received such a letter but claimed he had not personally read it.
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Prior to his appointment at VDM, Rambado was a chief director in the Department of Communications in Pretoria.
The DA has also condemned the lack of transparency around the termination of Rambado’s contract. Although his term ended in February, a source within the municipality revealed that an agreement between his legal team and the municipality allows him to continue receiving a salary for eight additional months.
DA regional leader Joseph Mariba called for accountability, stating that Rambado must repay the funds wasted during his time in office, particularly those lost through the VBS investment.
Both Rambado and Ramabannda declined the opportunity to comment on the matter.
