Municipality employees and businessman in court for over 148 million VBS corruption

CRIME

By Mpho Modiba

GIYANI –Three accused, aged 33, 42 and 64 arrested by Serious Corruption Investigation of the Hawks in connection with the alleged VBS looting and corruption, have been granted bail by the Giyani Specialised Commercial Crimes Court in Limpopo.

The 64-old-Risimati Maluleke who was previously the Chief Financial Officer and acting Municipal Manager for the Greater Giyani Local Municipality was arrested in Lulekani.  The 42-year-old Nditsheni Mashau,was a Manager Budget and acting Chief Financial Officer, currently the Chief Financial Officer of Giyani.

The third suspect aged 33 years old, a businessman Zwivhuya Tshishonga was arrested in Muhuya village, Thohoyandou on allegations of money laundering. He allegedly paid more than 87-thousand rand to his accomplice, Maluleke, as a gratification. Tshishonga’s company allegedly received money from municipality.

They were allegedly involved in the investment of more than 148-million rand in the now defunct VBS Mutual Bank.

They were arrested on charges of contravention of Municipal Finance Management Act (MFMA), corruption and money laundering.

In 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.

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