The Hawks announced that a businessman, chief financial officer (CFO) and acting municipal administrator were arrested during a raid on Tuesday morning.
- Senior officials in Ziyani, Limpopo province, have been arrested in connection with the VBS Bank corruption scandal involving alleged deposits of more than R148 million.
- The Hawks announced that a businessman, chief financial officer (CFO) and acting municipal administrator were arrested during a raid on Tuesday morning.
- The three will appear in the Ziyani Magistrate's Court on Wednesday on charges of money laundering, corruption and breaches of the Local Government Finance Management Act (MFMA).
The Hawks in Limpopo have arrested two senior officials and a businessman from the Greater Giyani Municipality on suspicion of fraud and breaches of the Local Government Finance Management Act (MFMA).
The arrest is related to the fraudulent investments of VBS Mutual Bank in 2017.
Spokesman Colonel Katlego Mogale said the Hawks arrested suspects aged 33, 42 and 64 during a raid on Tuesday morning.
The 64-year-old, who was arrested in Lulekani, is a former chief financial officer and acting municipal manager of the Greater Giyani Municipality. The 42-year-old is the municipality's chief financial officer and former budget director.
The Hawks have arrested a 33-year-old businessman from Mkhiya village in Thohoyandou on suspicion of money laundering.
According to Mogale, two of the suspects are suspected of having invested R14,865,6282.00 in VBS Mutual Bank and then paying the money as “commissions” to VBS affiliates. Mogale said the suspects are suspected of laundering some of the funds through multiple accounts, including those of the businessman's company.
“A total of R87.6 million was paid in return by the suspect's company to the first suspect over a period of time, which was a significant loss to the city of Ziyani,” she said.
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Mogale announced that the three will appear in the Giyani Magistrate's Court on Wednesday for a formal bail application.
The Hawks have made a series of arrests over VBS issues.
News24 previously reported that Hawks Lieutenant General Godfrey Lebeya said the crime squad had secured three convictions and sentences in connection with VBS corruption.
“This brings the number of defendants in the VBS scandal to 32, of whom three have already been convicted and sentenced. The defendants have appeared in seven different courts on eight case papers. “The team is working hard on this matter and has already given a verdict. We have obtained 2,898 statements in 26 documents,” he said.
The Hawks also alleged that Thulamela city officials were involved in mismanagement of state funds to the bank. An investigation by the department revealed that the municipality had invested R30 million of his money in his VBS.
News24 reported that the former mayor, who allegedly benefited from misappropriated funds, received a Jeep Cherokee worth more than R638,000.
