VBS | Arrested
The Hawks’ Serious Corruption Investigation unit arrested three suspects connected with the VBS Mutual Bank scandal that has gripped the nation. The arrests took place in different locations across Limpopo on March 5.
A high-profile figure, aged 64, the erstwhile Chief Financial Officer and the Acting Municipal Manager for the Greater Giyani Local Municipality, came under police custody in Lulekani. The allegations levelled against this suspect include contravening the Municipal Finance Management Act (MFMA), engaging in corruption activities, and charges pertaining to money laundering.
“The 64-year-old suspect had significant influence in the financial dealings of the municipality and abused this position for unlawful gain,” said a spokesperson for the Hawks, underscoring the gravity of the misconduct.
In Giyani, a 42-year-old woman, holding the pivotal position of Chief Financial Officer and having previously managed the budget as Acting CFO, was also detained. Her arrest was primarily for infringement of MFMA protocols.
An additional arrest was that of a 33-year-old businessman in the Muhuya village, Thohoyandou, entangled in the scandal on the suspicion of money laundering.
The web of deceit unravelled as investigators found that in 2017, two of the individuals had funneled a staggering R148 656 282.00 into VBS Mutual Bank, from which large “commissions” were paid to affiliates of the now-defunct bank.
“The money was siphoned off in a highly calculated manner, routed through various accounts to obfuscate the trail, but our team was able to trace the funds, including substantial amounts that ended up in the businessman’s account,” revealed an insider working closely with the investigation.
The elaborate scheme also entailed payments of R87 600.00 from the businessman’s company to the former municipal official as kickbacks, which the authorities have described as a significant financial detriment to the Giyani Municipality.
The individuals caught in the sweep of justice are scheduled to appear before the Giyani Magistrates’ Court on March 6, 2024, for their formal bail application hearings.