Three suspects arrested this week in Limpopo in connection with the VBS scandal were granted bail after appearing at the Giyani Magistrate’s Court on Wednesday.
Risimati Hitler Maluleke, 64, who was granted R25 000 bail, was before the court alongside Nditshedzeni Mashau, 33, and Zwivhuya Goodness Tshishonge, 42, who both got R20 000 bail.
The trio were arrested by the Hawks on Tuesday during a raid.
During an investigation, the Hawks revealed that the two suspects at the Giyani Municipality collectively invested R148 656 282.00 of the municipality funds into VBS Mutual Bank, with significant sums funnelled to VBS-affiliated companies under the guise of “commissions”. A portion of these illicit funds was laundered through multiple bank accounts, including that of the third suspect.
Maluleke, who is the former chief financial officer and now acting municipal manager, and his alleged accomplices are charged with contraventions of the Municipal Finance Management Act (MFMA), corruption and money laundering.
Tshishonge is the chief financial officer and former manager of budget in the municipality.
The court has ordered that their bail conditions be strict while the case was remanded to the Polokwane Specialised Commercial Crimes Court on May 13 for docket disclosure.
Spokesperson Colonel Katlego Mogale had initially said Maluleke and Tshishonge were arrested in Lulekani, while Mashau was arrested in Muhuya village, Thohoyandou, on accusations of money laundering.
“From the suspect’s company, a total amount of R87 600.00 was paid to the first suspect over a period of time as gratification, which was a great loss to the Giyani Municipality,” she said.
In the scandal, burial societies, stokvels, individuals, particularly the elderly, and municipalities, particularly in Limpopo, collectively lost nearly R2.3 billion in the brazen looting of their hard-earned money that they had invested in VBS Mutual Bank.
The scandal was branded “The Great Bank Heist”, and was exposed in 2018 by advocate Terry Motau, who was appointed to investigate it. He penned a report afterwards that blew the lid off the scandal.
In 2017, the bank started making headlines after some of the bank’s clients approached the media to say that the money they had invested in the banks was unavailable.
It was a downward spiral from there as more and more VBS clients discovered, to their shock, that their money had been stolen.
Municipalities in Limpopo, North West and Gauteng had irregularly invested a combined amount of more than R1.6bn. The money had presumably vanished into thin air.
More than 50 people were implicated in the scandal. Some of the ruling ANC heavyweights were arrested, among them the then-Limpopo ANC treasurer, Danny Msiza.
He has been facing a court case and was forced to step aside from the ruling party’s activities, disqualifying him from contesting in his party’s elections.
Msiza and scores of others are facing more than 100 charges for their alleged roles in the heist. They include the former VBS chairperson Calvin Tshifhiwa Matodzi, bank executives, politicians, municipal officials and managers.
The Star