VBS Mutual Bank accused former mayor, municipal head out on R30 000 bail

Former Thulamela mayor Avhashoni Tshifhango and municipal manager Hlengani Maluleke have been granted R30 000 bail each for their alleged role in the VBS Mutual Bank scandal. Picture: File

Former Thulamela mayor Avhashoni Tshifhango and municipal manager Hlengani Maluleke have been granted R30 000 bail each for their alleged role in the VBS Mutual Bank scandal. Picture: File

Published Feb 9, 2022

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Pretoria - Former Thulamela mayor Avhashoni Tshifhango, 52, and municipal manager Hlengani Maluleke, 49, were granted R30 000 bail each by the Thohoyandou Magistrate’s Court for their alleged role in the VBS Mutual Bank scandal.

They were arrested on Monday morning, with Tshifhango facing corruption charges and Maluleke a count of contravention of the Municipal Finance Management Act.

National Prosecuting Authority (NPA) spokesperson Mashudu Malabi-Dzangi said they did not oppose bail during court proceedings.

She said: “The suspects were released on R30 000 bail, because the NPA did not see any reason to oppose bail.”

She said the case was postponed to May 24 at the Polokwane Specialised Commercial Crimes Court.

Yesterday the Pretoria News reported that the pair were arrested by the Hawks after investigations by its Serious Corruption Investigation unit into inappropriate administering of state funds into VBS by the municipality.

The investigation revealed that the municipality invested an amount of R30 million into the now defunct bank.

Tshifhango is suspected to have accepted a Jeep Cherokee valued at more than R638 000 through a well-known VBS money-laundering third party, while Maluleke allegedly invested R30 million of municipal money into VBS, in contravention of the act.

The Hawks have since vowed to make more arrests in the matter.

So far, at least 25 people, including Limpopo ANC treasurer Danny Msiza and municipal officials, have been arrested, together facing more than 100 charges.

About 20 municipalities in Limpopo, North West and Gauteng lost nearly R1.6 billion, after illegally investing with the bank.

Overall, the suspects are accused of looting more than R2.3 billion and collapsing the bank in 2018.

Community groups and individuals – mostly the elderly from the rural Vhembe district – had invested their monies with the bank.

The accused, including Msiza and former VBS chairperson Calvin Tshifhiwa Matodzi, bank executives, politicians, municipal officials and managers, were formally indicted by the NPA in March last year.

All the suspects have denied the charges. This came after advocate Terry Motau penned a report that blew the lid off the VBS scandal, implicating them in 2019.

According to the 206-page indictment, the NPA alleged that Msiza was the central figure between VBS and the municipalities that had illegally invested monies in contravention of the Municipal Finance Management Act.

Msiza, Matodzi, former ANCYL Limpopo leader Kabelo Matsepe, Rallion Razinnane, Takunda Edgar Michele, Tshianeo Madadze, Andile Malusi, Ramavhunga Mulimisi, Solomon Maphosa, Simpho Malabar, Phalaphala Ramikosi, Thifhelimbilu Nesane, Paul Manila and Robert Madzonga are out on bail of between R50 000 and R100 000 each after being charged with180 counts, including racketeering and corruption.

Pretoria News