Three more arrested in connection with VBS Bank scandal
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Durban – Three more people have been arrested in connection with the ongoing investigation into the VBS Bank scandal.
Police said a 57-year-old former municipal manager of Fetakgomo-Greater Tubatse Municipality, 39-year-old former chief financial officer and the 41-year-old owner of a private business were arrested on Tuesday morning at their Pretoria residences.
“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,” said police spokesperson Brigadier Nomthandazo Mbambo.
She said the investigation revealed that Fetakgomo-Greater Tubatse Local Municipality invested an amount of R230 million which was paid in five tranches from November 15, 2016 to February 19, 2018. According to SAPS, the whole amount invested was never paid back to the municipality.
The three will appear at 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.
So far, at least 14 people have been arrested. They face more than 100 charges.
In August, IOL reported that about 14 municipalities in Limpopo, North West and Gauteng, lost nearly R1.6 billion, after illegally investing with the bank.