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7 months ago
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The Hawks said a businessman, CFO and acting municipal manager were arrested during a raid on Tuesday morning.
- Senior officials from the Giyani Municipality in Limpopo have been arrested in connection with the VBS bank corruption scandal involving an alleged deposit of more than R148 million.
- The Hawks said a businessman, CFO and acting municipal manager were arrested during a raid on Tuesday morning.
- The trio will appear in the Giyani Magistrate's Court on Wednesday on charges of money laundering, corruption and violation of the Municipal Finance Management Act (MFMA).
The Hawks in Limpopo have arrested two senior officials from the Greater Giyani Local Municipality as well as a businessman for alleged fraud and violation of the Municipal Finance Management Act (MFMA).
The arrests relate to a 2017 fraudulent VBS Mutual Bank investment.
Spokesperson Colonel Katlego Mogale said the Hawks arrested the suspects, aged 33, 42 and 64, during a raid on Tuesday morning.
The 64-year-old arrested in Lulekani is the former chief financial officer and acting municipal manager for the Greater Giyani Local Municipality. The 42-year-old is the chief financial officer and former manager of budget in the municipality.
The Hawks arrested the businessman, 33, in Muhuya village, Thohoyandou, on accusations of money laundering.
Mogale said it is alleged two of the suspects invested R148 656 282.00 into VBS Mutual Bank, followed by monies paid to VBS affiliated companies as "commissions". 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 600.00 was paid to the first suspect over a period of time as gratification, which was a great loss to the Giyani Municipality," she said.
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Mogale said the trio will appear in the Giyani Magistrate's Court for a formal bail application on Wednesday.
The Hawks have effected a string of arrests in the VBS matter.
News24 previously reported that Hawks head Lieutenant-General Godfrey Lebeya said the crime-fighting unit secured three convictions and sentences relating to VBS corruption.
"This brings the number of accused persons in the VBS scandal to 32, with three of them already convicted and sentenced. The accused are appearing in seven different courts on eight of the case dockets. The team is working hard on this matter and has already obtained 2 898 statements in 26 dockets," he said.
The Hawks also implicated officials from the Thulamela Municipality in the inappropriate administering of state funds into the bank. The unit's investigation revealed that the municipality invested an amount of R30 million into VBS.
News24 reported that the former municipality mayor, who allegedly benefitted from the misappropriated funds, received a Jeep Cherokee valued at over R638 000.
