Staff Reporter.
A man who reportedly took part in the looting of VBS Mutual Bank was arrested by the Hawks.
The suspect, aged 59,who is the former Mahikeng Municipality official invested Mahikeng local municipality funds in VBS in exchange for gratification.
Hawks spokesperson Colonel Katlego Mogale said the arrest was made in Klerksdorp, the North West, on Tuesday.
“The suspect is reported to have taken part in the looting of VBS Mutual Bank through investing of Mahikeng Local Municipality funds.”
Mogale added R92 million of taxpayers’ money was invested into VBS in contravention of the Municipal Finance Management Act, in return for a generous line of credit.
The official allegedly used the credit to buy two-high powered vehicles and property in Klerksdorp, amounting to R1.7 million in 2017 and 2018.
Mahikeng is one of 20 municipalities that invested municipal funds with VBS.
Mogale said of the R92 million, only R7 million was paid back to the municipality.
Hawks head Aubrey Lebeya said anybody involved with that scandal would be held to account.
The 59-year-old is expected to appear in the Mahikeng Regional Court on Wednesday to face charges of the contravention of the Municipal Finance Management Act and Prevention and Combating of Corrupt Activities Act.
The bank was put into liquidation in 2018 after tragic scenes of pensioners waiting outside the bank to withdraw money that no longer existed played themselves out.