Staff Reporter.
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.
Maluleke was arrested on charges of contravention of the Municipal Finance Management Act (MFMA), corruption and money laundering.
While Goodness was arrested in Giyani. She was a Budget Manager and Acting Chief Financial Officer, and currently the Chief Financial Officer, of Giyani. She is facing charges of flouting the MFMA.
The third suspect, aged 33, Nditshedzeni is a businessman. He was arrested in Muhuya village, Thohoyandou, on allegations of money laundering.
During 2017, two of the suspects invested a total of R148 656 282.00 into VBS Mutual Bank. Large amounts were paid to VBS affiliated companies as so-called “commissions”.
Some of this money was laundered through several bank accounts, including that of the third suspect.
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.
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.
Compiled by Lehlohonolo Lehana.