VBS loot: Three more former officials from Gauteng municipalities to appear in court

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VBS bank clients keep vigil at the bank, waiting to withdraw whatever is possible.
VBS bank clients keep vigil at the bank, waiting to withdraw whatever is possible.
Armando Chikhudo
  • Three more people will join the rest of the accused awaiting trial for allegedly looting VBS Mutual Bank.
  • The three, who previously worked at the West Rand municipality, were arrested on Monday.
  • They are expected to appear in court on Tuesday.

Three former Gauteng municipal officials will appear in the Pretoria Specialised Commercial Crimes Court on Tuesday for allegedly defrauding VBS Mutual Bank.

They are former West Rand District Municipality employees.

The Hawks' Serious Corruption Investigation unit arrested them at different locations in the province on Monday morning.

Their arrests form part of the ongoing investigation into the looting and collapse of VBS.

Hawks spokesperson Colonel Katlego Mogale said they were linked to financial deposits to the bank made by municipalities on the West Rand.

READ | Collins Chabane municipal manager in court for allegedly receiving gifts in VBS bank scandal

"The investments made by the municipalities into VBS are reported to have been done in contravention of the provisions of the Municipal Finance Management Act, by investing municipal funds with a mutual bank (sic).

"During their arrest, a search and seizure operation was also conducted to confiscate IT equipment which could contain pertinent documentation and/or articles relating to the investigation," Mogale said.

About 20 municipalities deposited an amount of R3.7 billion into the now-defunct bank.

"A total of R2.2 billion was repaid to the municipalities while R1.5 billion is either lost or unpaid. Some of the lost funds, amounting to R67 million, were allegedly paid as brokerage commissions to entities and individuals to attract more deposits from municipalities. This nationwide investigation has revealed that VBS employees, municipal executives and other officials received gratifications for the investments made," Mogale said.

The latest three arrests followed an undertaking by Hawks boss Lieutenant General Godfrey Lebeya that more arrests were imminent after the fraud and corruption at the bank.

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