The Hawks in Limpopo have arrested two senior officials from the Greater Giyani Local Municipality and a businessman for alleged corruption linked to the VBS Mutual Bank scandal involving more than R148 million.
The suspects, aged 33, 42 and 64, were arrested during a raid on Tuesday.
Hawks spokesperson Colonel Katlego Mogale said the 64-year-old arrested in Lulekani, is a former chief financial officer and acting municipal manager for the Greater Giyani Local Municipality.
The 42-year-old who is a former manager of budget in the municipality, was arrested in Giyani. She still works for the municipality as a chief financial officer.
Meanwhile, 33-year-old the businessman was arrested in Muhuya village, Thohoyandou, on accusations of money laundering.
According to Mogale, in 2017, two of the accused invested over R148 million into VBS Mutual Bank.
Mogale said the suspects allegedly laundered some of the money using several accounts, including the businessman's company.
"From the suspect's company, a total amount of R87,600 was paid to the first suspect over a period of time as gratification, which was a great loss to the Giyani Municipality," she said
The suspects are expected to appear in the Giyani Magistrate's Court on Wednesday.
Its been over five years, burial societies; stokvels; individuals, particularly the elderly; and municipalities continue to count their losses after the brazen looting of nearly R2.3 billion which was invested in VBS
The scandal, which could arguably be branded “The Great Bank Heist”, was exposed in 2018 by advocate Terry Motau, who was appointed to investigate it.
Municipalities in Limpopo, North West and Gauteng had irregularly invested a combined amount of more than R1.6 billion. The money had presumably vanished into thin air.
More than 50 people were implicated in the scandal.
IOL News