Three more arrested in VBS Mutual Bank scandal

Two former senior officials of the Fetakgomo-Greater Tubatse Municipality and a 41-year-old businessman are the latest suspects to appear before court for illegal deposits into the liquidated VBS Mutual Bank.

On Tuesday, the Hawks in a statement said the two officials were a 57-year-old former Municipal Manager and a 39-year-old former Chief Financial Officer. The three were arrested on Tuesday morning at their residences around Pretoria.

Various former and current officials of several municipalities and business people have already been arrested across the country for their alleged role.

Hawks 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.

She said an investigation revealed that Fetakgomo-Greater Tubatse Local Municipality invested an amount of R230 million which was paid in five trenches from 15 November 2016 to 19 February 2018.

“The whole amount invested was never paid back to the municipality,” she said.

The three were expected to appear in the Pretoria Specialised Commercial Crimes Court on Wednesday on charges of Contravention of section 173 of the Municipal Finance Management Act, 2003 (Act No. 56 of 2003); corruption; and money laundering.

Source: South African Government News Agency

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